Toshiba 1997 Annual Report Download - page 8

6.
Topics
Review of Operations
Information Equipment
Sales of PCs advanced 80 percent as Toshiba contin-
ued to capture more market share worldwide. This
performance was the result of an active new product
development program targeting high-performance
models. Toshiba retained its position as the world’s
leading name in portable PCs, ranking far ahead of
all other competitors.
There were many high-profile product introduc-
tions during the year. One was Libretto, the world’s
smallest and lightest “mininotebook computer”
compatible with Windows 95. PCs incorporating
DVD-ROM drives further reinforced Toshiba’s
leadership. In September 1996, Toshiba entered the
U.S. home PC market with the introduction of its
Infinia series. This was followed in March 1997 with
the Equium series of desktop PCs for corporate users.
Toshiba began offering desktop PCs in Europe in
June 1997. This global expansion is expected to
further heighten Toshiba’s share of the worldwide
PC market.
Copiers performed well in overseas markets. To
build on this momentum, Toshiba reinforced
production and sales activities in Europe and North
America, started mass production in China, and
bolstered sales capabilities in Taiwan and Singapore.
In the rapidly growing mobile communications
field, Toshiba began selling the GENIO pocket
communicator in Japan. This revolutionary product
combines a PHS telephone with a 32kbps high-
speed modem.
Data Storage Devices
Sales of computer data storage devices expanded
along with the global PC market. In the HDD field,
units offering high-capacity and slim dimensions are
in particular demand. Taking the lead, Toshiba
introduced the industry’s first 2.5-inch HDD
measuring only 8.45 millimeters in height. Market
response was very strong. In the CD-ROM drive
market, the shift toward higher speed models is
accelerating. Toshiba raised sales by introducing a
super-slim 10X drive and several other models that
set new industry standards. Furthermore, with the
start-up of production at Toshiba Information
Equipment (Philippines), Inc., Toshiba is even better
positioned to meet rising demand for PC peripherals.
With the number of DVD movie titles rising,
DVD-video players are gaining acceptance. In April
1997, specifications for the DVD-RAM were
finalized. This will lead to widespread use of DVD
drives in PCs. Toshiba is involved in all aspects of
this exciting new medium, producing drives,
software production systems and many other DVD-
related products.
Information/Communication Systems
Libretto is the world’s smallest
PC using a Pentium processor.
An immediate hit, this model
created an entirely new
market category: the mini-
notebook computer.
Results
Share of Net Sales %
48.8 48.9 50.5 53.0 56.8
Mar. ’93 ’94 ’95 ’96 ’97
Tadashi Okamura
Senior Vice President
Kenichi Mori
Senior Vice President
Information/Communication Systems
and Electronic Devices
Sales (see note on page 22)
Annual Increase (%)
Rising investments in information and network-
related equipment worldwide were behind a large
gain in sales of personal computers (PCs) and periph-
erals. This trend was the major contributor to the 14
percent increase in segment sales to ¥3,256.2 billion.
However, operating profit declined due to a steep fall
in sales prices of semiconductor memory devices.
93March
0
800
1,600
2,400
3,200
-20
-10
0
10
20
94 95 96 97
(%)(¥ billion)
Sales