NEC 2008 Annual Report Download - page 9

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
this hardware-centered production innovation drive to software development and systems
integration. Specifically, efforts are focused on offering better proposals to customers to improve
the quality of orders we receive, and to reduce the redevelopment cost incurred as a result of
setbacks during the development process. We are also standardizing software development
techniques not only within the NEC group but also at partner companies. Another initiative is using
a half-finished software module called a “system model” to shorten development periods and
improve quality. These improvement measures constitute a steady and continuous endeavor. By
continuously reaping the benefits of this hard work, we ultimately aim to enhance our profitability.





 One reason for the semiconductor area’s lackluster performance was its large R&D expenses.
NEC Electronics Corporation, for example, used to spread its resources thin. However, it is now
focusing R&D resources on applications for digital consumer electronics and automobiles, with
the aim of becoming an industry leader in each field. Looking ahead, cross-applications of R&D
achievements will be important for us. NEC leads the way in cross-applications of software
development achievements, and we want to bring this advantage to bear on boosting develop-
ment efficiency in the semiconductor field as well.
We have managed to restore profitability in the mobile terminals area by concentrating on
Japan at the expense of overseas where we posted large losses. NEC had lost some market
share over the past two to three years in Japan, but recently released new models have garnered
a strong customer response for their fast and efficient operability, long standby battery life and
product design and our market share is improving as a result. In fiscal 2009, I believe we can
substantially increase our mobile handset sales volume by capturing a greater market share with
an expanded range of user friendly, attractive models and by increasing the number of mobile
communications carriers to whom we supply our handsets.
Information terminals are what people will actually touch and manipulate when interfacing
with NGNs. In the near future, I believe that an entirely new type of terminal based on current
mobile handsets will become necessary. This will certainly take advantage of NEC’s unique
strengths in linking today’s PCs, home networks and more.