Toshiba 1996 Annual Report Download - page 19

17.
Sales
Annual Increase (%)
Note: Segment sales totals include
intersegment transactions.
Share of Net Sales %
49.0 48.8 48.9 51.9 54.3
Mar. ’92 ’93 ’94 ’95 ’96
Review of Operations
Information/Communication Systems and Electronic Devices
Information Equipment
Toshiba’s portable computers preserved their number-one global market share. The five
millionth portable computer since the 1985 introduction of the first model came off the
production line in May 1995. The growing demand for home-use PCs and brisk corporate
investment in information-related infrastructure fueled rapid expansion in the worldwide
PC market. Toshiba’s worldwide PC sales rose 35 percent. This performance was due in
large part to Toshiba’s introduction of many new products that reinforced market leader-
ship. High-speed processing and high-resolution displays proved to be the most popular
features. In March 1996, the company launched the TECRA 720, the world’s first note-
book model incorporating Intel Corporation’s new low-voltage Pentium processor
along with many distinctive Toshiba advances. In November 1995, Toshiba introduced the
BREZZA desktop computer, an all-in-one model with pre-installed key application soft-
ware that enhanced Toshiba’s competitive edge in Japan. To support joint development
Segment sales rose 11 percent to a record ¥2,948.9 billion, propelled by rapid
growth in the global personal computer (PC) market and solid demand for computer
peripherals and semiconductors. Higher color picture tube production in Thailand
and the United States was another factor in the year’s record-setting sales. As a
result, this segment accounted for 54 percent of net sales and an even higher
share of earnings.
and strengthen ties with Microsoft Corporation in the development of next-generation PC operating systems, Toshiba
opened an engineering development center in Seattle, Washington.
In other information equipment, Toshiba attracted considerable attention with its January 1996 introduction of Prim-
age 30, a digital copier that also functions as a fax. Targeting demand for copiers in China and elsewhere in Asia, Toshiba
acquired an equity interest in a firm that was renamed Toshiba Copying Machine (Shenzhen) Co., Ltd. In April 1996,
Toshiba merged its consumer electronics and information systems subsidiaries in Singapore to strengthen its operating
Introduced in Japan in April
1996, the Libretto 20 mini-
notebook PC is the world’s
smallest and lightest PC running
Microsoft’s Windows 95.
base in this region.
Data Storage Devices
The booming PC market generated solid demand for data storage devices. As the leading manufac-
turer of 2.5-inch hard-disk drives, Toshiba secured its position in the vanguard of this market with
a series of revolutionary product introductions. One ultra-slim model stands only 8.45mm (1/3-
inch) tall–a new industry standard. CD-ROM drives are another core element of Toshiba’s periph-
erals business. Exhibiting its prowess here as well, the company unveiled the world’s slimmest 6x
CD-ROM drive and several other innovations.
Next-generation recording technology is another key facet of
Toshiba’s information systems line-up. With uniform DVD standards
now set, Toshiba will introduce DVD-ROM drives for use with com-
puters and DVD video players later this year. The company formed a
Storage Media Business Division to coordinate activities involving
discs, drive units and other items needed to produce and promote
DVD products.
Information and Communication Systems
Advances in digital technology are rapidly fusing the markets for infor-
mation and communications systems. In response, Toshiba merged
related divisions to form the Information-Communications and Control
Systems Division in April 1996. The U.S. cable industry is a prime
Sales
Toshiba Information Equipment (Philippines)
Inc. will meet rapid growth in demand for
HDDs, CD-ROM drives and printed circuit
boards for PCs, and also produce DVD
equipment. (artist’s impression)
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( ¥ billion)
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