Toshiba 1997 Annual Report Download - page 10

8.
Toshiba is the world’s leading maker of portable PCs. What is the outlook for the company in
this highly competitive market? And what are your plans for the desktop PC market, which
Toshiba entered last year?
Despite fierce competition, Toshiba retained its number-one position in the global portable PC market in
1996. This was due in large part to our determination to take the lead in developing new market sectors.
One example of this was our introduction in Japan of the Libretto. This PC, which is bundled with Windows
95, is the world’s smallest mininotebook computer. In 1997, we will be introducing this revolutionary PC in
overseas markets. So this should further bolster our profile.
In notebook PCs, Toshiba has consistently led the field in the use of new technology. We were first to
use a 2.5-inch HDD, and first with an LCD. Now we are planning on commercializing a notebook PC with a
DVD drive. By tapping all of Toshiba’s resources to remain at the forefront of technological progress, we
intend to preserve our position at the top of the world portable PC market.
Regarding the desktop market, we began selling our first models for the home in the United States in
September 1996. In the spring of 1997, we started selling desktop models for the corporate market. We
began offering desktop PCs in Europe in June 1997 and, eventually, we plan to move into all major markets
of the world. This should further raise our share of the global PC market.
Network computing is one of the fastest growing sectors of the computer market today. What
are Toshiba’s plans here?
We are seeing a relentless shift toward open systems. This is sparking meteoric growth in demand for
intranet and other network-related systems. Naturally, Toshiba has been a beneficiary of this growth. Until
recently, corporate clients were mainly interested in establishing basic infrastructures, like an E-mail system.
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But now, clients are seeking networking solutions that can boost productivity. Devices that combine net-
working and mobile communications capabilities are one example of this. Users want mobile terminals and
data transmission systems that can provide the necessary system access anywhere and anytime. It will become
increasingly critical that we be able to structure such system environments. We already have great strengths
in mobile telecommunications, mininotebook computers and other core technologies. Now we are placing
more emphasis on multi-functional personal data terminals, network servers, routers and similar items. By
integrating these elements with our existing knowhow, we will be in an excellent position to grow along
with the rise in demand for sophisticated networking systems.
In 1996, Toshiba began marketing DVD-video players and DVD-ROM drives. What is the
outlook for the use of DVD technology in PCs?
Due to a shortage of DVD titles, initial sales of our DVD-video player did not meet our expectations.
This year, however, we expect to see rapid growth in the number of titles available. Thus, 1997 is likely to
be the true beginning of the DVD era. In March 1997, we started selling DVD-video players in the United
States. These players will appear in stores in Asia this summer.
Indications are that the widespread use of DVD technology in PCs will begin in 1997. And now that
specifications for the DVD-RAM have been finalized, we hope to commercialize a DVD-RAM drive by the
end of fiscal 1997. This is certain to accelerate the pace of DVD utilization. Toshiba will take full advantage
of our strengths in PCs, semiconductors and other related fields to promote the development of the DVD
market and, of course, to firmly position Toshiba as a leader in this dynamic market.
Information/Communication Systems Strategic Overview
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93March
0
1,000
2,000
3,000
94 95 96 97
(thousand units)
Toshiba PC
Shipments
Japan
Overseas
March
0
1,000
2,000
3,000
94 95 96 97
(thousand units)
Toshiba Portable
Phone Shipments
Japan
Overseas
Note: Above data exclude PHS
models.
8.