Toshiba 2001 Annual Report Download - page 25

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The continuing wave of digitization brought increased demand
for mobile, network and visual equipment and generated a
4% rise in segment sales to ¥1,578.6 billion (US$12,731 mil-
lion). However, operating income declined 51% to ¥23.8 bil-
lion (US$192 million) largely as a result of sluggish PC sales
in a slowing U.S. economy. In fiscal 2001, this segment has
seen extensive restructuring in overseas PC operations.
Through the enhancement and fusion of technologies and core competence in AVC4—
audio visual products, computers, communications and cards—and in optical and mag-
netic disks, the segment will concentrate efforts on creating value that epitomizes the
approaching broadband era.
Established in April 2000, the iValue Creation Company offers information services that
provide the infrastructure for the Internet and mobile Internet. Of particular note among
advanced websites operated by Toshiba, the Ekimae Tanken Club (http://ekitan.com)
has seen its technology adopted by other leading sites in Japan, and now boasts over
350,000 paying members who use cellular phones to access its services. In fiscal 2000,
Toshiba also launched Application Service Provider (ASP) services for other companies’
websites. Early success includes support for Matsui Securities Co., Ltd. and other securi-
ties companies offering share information and share transaction services via cellular
phones. The iValue Creation Company is venturing into new business domains with high
B2C and e-commerce growth potential, such as travel, finance, and music distribution.
The scope of the Digital Media Network Company covers computer network equipment,
PCs, data storage media and other peripherals, visual products and mobile devices. The
company’s energies are focused on development of innovative products with high cus-
tomer appeal, and its advantages include market-leading know-how in bridge media,
BluetoothTM, MPEG-4 and other technologies that are adding new capabilities and value
to mobile products.
The launch of “Net Business Platform” operations in Japan brought to market Toshiba’s
solution for an optimized balance of hardware and software. Overseas, continuing strong
performances from cable modems ensured Toshiba’s position among the elite in this market.
Toshiba retained its lead as the world’s largest seller of portable PCs for the seventh con-
secutive year. However, global sales declined 7% to ¥710.0 billion as the U.S. slowdown
made itself felt. Efforts to restructure the PC business in the U.S. include aggressive pro-
motion of direct sales to companies and continuing to bring high-value-added products to
market. In the consumer market, Toshiba worked to differentiate its products from those
of its competitors by enhancing Configuration-to-Order (CTO) products, and also initiated
direct sales. Despite intense competition in Europe, Toshiba continued to attract high
support, maintaining the market leadership it has enjoyed since creating the business. In
Japan, Toshiba recorded an all-time high in PC sales, which increased nearly 25% year
on year.
1,406
1,518
1,579
’99 ’00 ’01
SHARE OF SALES (%)
Years ended Mar. 31 1999 2000 2001
23.1 23.3 22.7
NET SALES
(¥ billion)
Toshiba firsts in commercializing BluetoothTM products
include the BluetoothTM PC Card and Wireless Modem
Station, and the BluetoothTM wireless link for data transfer
from a PC to an LCD projector.
Bridge media of the mobile age. The SD Memory Card
offers high-level copy protection and high-volume storage
capacity; SmartMediaTM offers simplicity and versatility.
Digital
Media