Fujitsu 2008 Annual Report Download - page 44

FISCAL 2007 BUSINESS RESULTS
nMarket Trends
PCs/Mobile Phones: PC shipments in Japan declined 1.0% year on year in 2007 to 14.13
million units. This came as sluggish growth in corporate demand for Windows Vista™ over-
shadowed increased new and replacement demand mainly among individual consumers
for Windows Vista™ PCs. In contrast, worldwide PC shipments increased 15.4% year on year
to 269.1 million units, as sales of notebook PCs grew briskly, mainly in Europe and Asia,
outweighing slower U.S. sales.
Mobile phone shipments in the domestic market in 2007 increased 4.4% year on
year to 51.52 million units. Shipment volume was led by handset models with “One-
Segment” broadcast reception and music player functions.
HDDs: The global enterprise 3.5-inch hard disk drive (HDD) market climbed 8.1% year
on year in 2007 to 29.86 million units on the back of robust server demand. Shipments
of 2.5-inch HDDs models for the mobile market rose 35.7% year on year to 164.45 million
units, benefiting from a global increase in demand for notebook PCs.
nOperational Review
Sales from the Ubiquitous Product Solutions segment rose 6.3% year on year to
¥1,188.9 billion.
PCs/Mobile Phones: Sales increased 8.9% to ¥837.0 billion, boosted by growth in
global PC shipments, up 4.3% to 8.81 million units, and surging shipments of mobile
phones, up 45.7% to 5.9 million units on brisk demand for our Raku Raku Phone and
900 Series models. In the mobile phone business, we established a new subsidiary in
January 2008 through the merger of our production divisions and customer service
centers with the production and repair divisions of Fujitsu Wireless Systems, which was
made a wholly owned subsidiary through a share exchange, and other subsidiaries. This
step will enable Fujitsu to improve quality across the full range of services, allowing, for
example, faster responses to customer requests.
HDDs: Sales increased 0.9% year on year to ¥332.7 billion. Although shipments of
2.5-inch mobile HDD models rose a robust 19.7% to 37.07 million units in line with
increased demand for notebook PCs, the competitive environment remained severe
due to falling prices and other factors.
Operating income increased by ¥10.9 billion over the previous fiscal year to ¥52.5
billion. Excluding changes in accounting policies, operating income increased by ¥12.6
billion for the year. Income growth reflected benefits gained from higher PC sales and
steady progress in reducing component costs and managing operations more effi-
ciently. Income also grew from firm mobile phone performance, particularly for Raku
Raku Phone. Another factor was HDDs, where the impact of falling prices in the first half
of the year leveled off in the second half, and full-scale sales of HDDs with perpendicular
magnetic recording technology and other new models got under way.
(Years ended March 31)
SUBSEGMENT SALES*
PCs/Mobile Phones
Hard Disk Drives
* Including intersegment sales
(Billions of Yen)
Others
(Years ended March 31)
OPERATING INCOME/
OPERATING INCOME MARGIN
Operating income (left scale)
Operating income margin (right scale)
(Billions of Yen) (%)
(Years ended March 31)
CAPITAL EXPENDITURE, RATIO OF
R&D EXPENDITURE TO NET SALES
Capital expenditure (left scale)
Ratio of R&D expenditure to net sales
(right scale)
(Billions of Yen) (%)
2004 2005 2006 2007 2008
0
300
600
900
1,200
948.4 1,031.4 1,059.9 1,118.3 1,188.9
18.1
19.7 17.8 19.8 19.1
740.2 776.1 756.6 768.6 837.0
190.1 235.5 285.4 329.8 332.7
2004 2005 2006 2007 2008
0
30
15
45
60
0.0
5.0
2.5
7.5
10.0
33.2 32.0 34.8
41.6
52.5
3.5 3.1 3.3 3.7
4.4
2006 2007 2008
0
12
6
18
24
30
0
4
2
8
6
10
19.4
24.8
27.6
3.0 3.3 3.1
042
ANNUAL REPORT 2008FUJITSU LIMITED
UBIQUITOUS PRODUCT SOLUTIONS