Toshiba 2009 Annual Report Download - page 20

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18
Digital Products Segment
Business Review
The “TG01” mobile terminal brings innovation to the mobile internet.
The “TG01” is an unprecedented convergence of information terminal
and mobile phone in a multifunctional product offering high-speed
communication. At approx. 9.9mm deep, the TG01 sports an approx.
4.1 inch touch screen, and a high-speed CPU that delivers an enjoyable
user experience and smooth moving images.
Technological strengths in such areas as high-
resolution imaging, wireless, and advanced
devices support rich communications and total
connectivity. The company fuses leading-edge
technologies in the multimedia mobile phone
terminals that it develops and brings to market.
In FY2008, concerted efforts to enhance
product differentiation could be seen in the
release of the small size, sport-oriented “Sportio”
mobile phone for au, and the “830T” mobile
phone, which allowed users to create original
designs, developed for Softbank. However, sales
fell in a contracting market, the result of a
changed handset sales system in Japan, and a
slump in global demand triggered by the
recession also contributed to the sales decline. As
a result, the company reported notably lower
sales and fell into the red.
We will continue to release high value-
added products that offer a fusion of our in-
house technological strengths. We will also
advance business restructuring by manufacturing
outside of Japan and making use of outsourcing,
as a means to reduce costs in the face of
shrinking demand for mobile terminals.
In AV, we offer digital high-definition LCD TVs and
video recorders. In data storage, we lead the
world market with small form factor HDD. We
develop and release leading-edge products
offering unique technologies that differentiate
them from competing products and enhance
Toshiba’s strength in the digital AV industry.
In FY2008, unit sales of LCD TVs rose, but we
faced significant declines in sales prices. In the
storage business, demand for HDD for PCs and
portable music players weakened. As a result of
lower sales, the company’s operating income
(loss) fell into the red.
Mobile Communications Company Digital Media Network Company
34.3%
2,951.2
2,467.5
2,805.5
15.8
0.6 0.5
-0.6
15.0
-14.2
FY 07FY 06 FY 08 FY 07FY 06 FY 08
Percentage of sales in FY2008 Sales (Billions of yen) Operating income (loss) (Billions of yen)
Operating income ratio (%)