Toshiba 2012 Annual Report Download - page 29

In April 2011 the in-house companies responsible for the
Visual Imaging business and PC business were merged to
form the Digital Products & Services Company. With this
move, we aim to actively promote business expansion in
the global market and establish efficient business
management driven by a greater sense of urgency.
In FY2011, the LCD TV business recorded considerably
lower sales, reflecting the completion of the transition to
digital terrestrial broadcasting in Japan, a decline in demand
following the end of the government’s eco-point campaign
and downward pressure on prices. The PC business also
recorded lower sales due to sales slowdowns in the United
States and Europe and foreign exchange adjustments caused
by yen appreciation. As a result, the company as a whole
reported lower year-on-year net sales.
In operating income, the PC business secured positive
results through cost reduction measures and the e ects of
lower parts and materials costs, but the TV business in Japan
saw significantly worse results on the impacts of reduced
unit sales and strong price erosion, and the company as a
whole reported lower year-on-year operating income.
Despite the tough domestic business environment for
TVs, we commenced production of LCD TVs in Egypt in
June 2011 and in November put in place a system for
increased production of LCD TVs in Indonesia, allowing us
to construct  exible and e cient supply systems in each of
these high growth emerging markets.
We reinforced this move by continuing new model
launches in our “Power TV Series,” which is designed to
ensure stable viewing performance even in areas where
signal reception is weak or electricity power supply is
unstable. We are increasing sales by supplying products
that meet local needs and by carrying out strategic
marketing in each region, an approach that has allowed us
to win a large share in the ASEAN market, in excess of 20%.
We have also launched new high value-added
products that utilize the visual imaging and PC
technologies that we have cultivated in-house.
In October 2011 we released the “REGZA Tablet
AT700,” the world’s thinnest and lightest*1 high de nition,
wide viewing angle 10.1-inch tablet with LCD display. In
November 2011 we again created a world’s thinnest and
lightest*2 13.3-inch display Ultrabook™, and became the
first Japanese manufacturer to bring an Ultrabook™ to
market, when we launched the “dynabook R631,” a PC that
met a very warm response.
Another world- rst*3 followed in December 2012, the
release of the 4K2K high resolution 55-inch glasses-free 3D
“REGZA 55X3” LCD TV, which realizes a pixel count four
times higher than that of a full HD TV.
In a move to generate new income opportunities we
are expanding our service business. In April 2011 we
established “Book Place,” an e-book store, and in February
2012 we released the “DB50” e-book reader in Japan.
Looking to the future, we will continue to develop a wide
range of products and aim to increase sales of hardware
and software, both in Japan and overseas.
Digital Products & Services Company
REGZA World REGZA World: In Japan, we are promoting products based on the “REGZA World” concept, which allows users to enjoy visual content whenever and
wherever they like. REGZA World seamlessly connects TVs and digital video recorders to mobile devices, such as tablets and notebook PCs.
REGZA World
Blu-ray
*1: For a tablet integrating a 10.1-inch LCD display.
Based on Toshiba research, as of September 30, 2011
*2: Based on Toshiba research, as of September 30, 2011
*3: For a consumer-use TV. Based on Toshiba research as of the October 2011 announcement.
Business Review / Digital Products Segment
27
TOSHIBA Annual Report 2012