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9
The goal of the Consumer Electronics seg-
ment, an integral part of JVC’s corporate
identity, is to deliver truly moving experi-
ences and total customer satisfaction
through high-quality sound and images. In
fiscal 2007, ended March 31, 2007, the
Consumer Electronics segment posted sales
of ¥543.3 billion, or 90% of the year-earlier
level, and accounted for 73% of total Group
sales. In addition, the segment reported an
operating loss of ¥3.4 billion, an improve-
ment of ¥6.2 billion from the prior-year loss.
Our LCD TV business is pushing ahead with two product lineups. Our
high-end line offers greater added value through the use of exclusive,
cutting-edge JVC technologies that deliver high picture and sound quali-
ty and fast frame rates for LCDs. Our basic line comprises models
aimed at securing sufficient volumes to forestall price erosion and sup-
port our high-end line.
In fiscal 2007, for our high-end lineup, we strengthened our full high-
definition (full HD) models and introduced a lineup of LCD TVs with a frame
rate of 120 frames per second (120Hz, 100Hz in PAL countries)—an indus-
try first—to deliver crisper fast-action images. These models spurred sharp
growth in our European sales, but we were unable to expand our overall
LCD TV sales due to a lack of consumer-inspiring features in Japan and our
emphasis on profit improvement over sales volume in the United States.
Meanwhile, we were able to keep reducing costs on several fronts,
including design, production, and procurement, through an array of
measures. These included developing chassis with far fewer parts, start-
ing to consign production to a site in Hungary to lower production
costs, and forming alliances among LCD TV manufacturers to procure
panels by strengthening partnerships, including the establishment of
relationships with new panel manufacturers.
Sales (Billions of yen)
Share of Total FY2007 Sales
73.2%
LCD TVs
Consumer Electronics
Business Segment Overview
HD LCD TV with Full HD Clear Motion Drive II
A high-resolution motion interpolation algorithm and fast double
frame rate render complicated images in higher
resolutions without blurring.
In fiscal 2008, we plan to extend our LCD TV lineup by introducing
the first large-screen full HD models with 120Hz frame rates—ranging
from a 37-inch model up to a 47-inch model. We will also seek to differ-
entiate our lineup even more through an exclusive JVC high-speed
processor, a newly developed high-image-quality engine that delivers
even better picture quality than the prior version.
Concurrently, we intend to end production and sales of unprofitable
products in Europe and Japan, use our U.K. plant to supply the U.K.
market exclusively, and accelerate our use of consigned production to
supply markets in continental Europe. Moreover, we will bolster the four-
region management system—for the Americas, Europe, Japan, and
Asia and Other Areas—through unifying regional production and sales
so as to respond more swiftly to market changes.