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0
15
45
60
30
0
3
6
12
9
32.0
3.1
0.5
0.1
4.4
3.7
3.3
52.5
41.6
34.8
2005 2006 2007 2008 2009
0
12
6
24
30
18
0
2
4
6
10
8
24.8
3.3
18.7
3.8
3.1
27.6
2007 2008 2009
0
300
1,500
1,200
600
900
1,031.4
776.1
235.5
19.7
949.11,188.91,118.31,059.9
2005 2006 2007 2008 2009
249.0
16.7
756.6
285.4
17.8
768.6
329.8
19.8
837.0
332.7
19.1
683.3
(Billions of yen) (Billions of yen) (%) (Billions of yen) (%)
Operating income (left scale)
Operating income margin (right scale)
Capital expenditure (left scale)
Ratio of R&D expenditure to net sales (right scale)
(Years ended March 31) (Years ended March 31) (Years ended March 31)
Sub-segment Sales* Operating Income/
Operating Income Margin
Capital Expenditure, Ratio of
R&D Expenditure to Net Sales
Ubiquitous Product Solutions
PCs/Mobile Phones
Hard Disk Drives
* Including intersegment sales
Others
[Fiscal 2008 Business Results]
Market Trends
PCs/Mobile Phones: PC shipments in Japan rose 4.7% year on
year in 2008 to 14.81 million units. Shipments to the corporate
sector struggled from September as the economy worsened. In
contrast, the consumer market saw increased sales volumes,
energized by a drop in sales prices and rapid demand growth for
compact, low-priced notebook PCs. Worldwide PC shipments,
meanwhile, increased 10.2% year on year to 300.23 million units,
despite the impact of the global economic downturn, while
Japan also saw significant growth in sales of compact, low-cost
notebook PCs.
Mobile phone shipments in Japan in 2008 decreased 18.2%
year on year to 42.16 million units, as the handset replacement
cycle lengthened due to mobile carriers’ elimination of a system
of special sales incentives and adoption of fixed-term subscrip-
tion contracts.
HDDs: The global enterprise 3.5-inch hard disk drive (HDD) market
climbed 6.8% year on year in 2008 to 31.89 million units spurred
by double-digit year on year growth from July to September.
Shipment growth was partially offset, however, by a double-digit
year on year decline for October to December due to worsening
economic conditions. Shipments of 2.5-inch HDDs models for the
mobile market rose 29.1% year on year to 212.28 million units.
Backed by substantial growth in demand for notebook PCs, ship-
ments increased by over 40% for July to September, although the
growth rate fell dramatically from October to December.
Operational Review
Sales from the Ubiquitous Product Solutions segment (PCs/mobile
phones/HDDs) declined 20.2% year on year to ¥949.1 billion.
PCs/Mobile Phones: Sales decreased 18.4% to ¥683.3 billion.
Global PC shipments declined 16.5% year on year to 7.36 million
units, reflecting intensifying price competition and slumping cor-
porate sales. Lower shipment volume was especially evident in
Europe. Japan shipments of mobile phones fell 22% to 4.6 million
units despite brisk demand for our Raku-Raku Phone models. In
addition to market contraction triggered by the elimination of
special sales incentives from December 2007, volume also
decreased due to adverse economic conditions.
HDDs: Sales decreased 25.2% year on year to ¥249.0 billion,
reflecting greater-than-anticipated price drops due to increased
competition, and deteriorating economic conditions.
Operating income decreased ¥52.0 billion from the previous
fiscal year to ¥0.5 billion. This reflected lower sales of mobile
phones and increased costs incurred from more sophisticated
mobile phone functionality. Income was also affected by drops in
PC prices and sales volumes, despite benefiting from reduced
costs for PC components. Another factor was HDDs, where losses
expanded as intense global competition brought dramatic price
drops in HDDs for notebook PCs and servers, and HDD head pro-
duction declined.
In April 2009, Fujitsu signed agreements finalizing the transfer
of the hard disk drive and HDD media businesses to Toshiba
Corporation and Showa Denko K.K., respectively. Ahead of this
change, we terminated our HDD head business at the close of
fiscal 2008.
Operational Review and Outlook
034 ANNUAL REPORT 2009
FUJITSU LIMITED