Toshiba 2013 Annual Report Download - page 25

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Relay
Relay
Client PC
TSCM Console
TSCM Console
Client PC
Toshiba Smart Cloud
Manager (TSCM) admin server
Client PC
Client PC
Company in-house LAN Remote LAN
Digital Products & Services Company
*1: Lightest 13.3” wide screen LCD equipped laptop PC. Based on in-house research as of
June 11, 2012.
*2: When “high-speed startup mode” is selected. Fastest recorded result in seconds at time
of shipping, based on in-house research.
In FY2012, the visual products business such as LCD TVs
recorded significantly lower sales due to a continued
demand decline in Japan and sluggish sales in North
America. The PC business also recorded lower sales due to
market contraction, notably in North America. As a result,
net sales were lower. In terms of profitability, the visual
products business was unable to achieve a significant
improvement due to further fall-off in demand in Japan.
Although the PC business secured a pro t on rigorous cost-
cutting measures, its operating income reduced due to
lower sales. This resulted in decrease of total operating
income.
In a very harsh business environment, we sought to
improve profitability and strengthen the digital products
business by promoting structural reforms throughout
FY2012. We integrated the TV design and development
function into Ome Complex, the notebook PC and tablet
design base, to accelerate the development of new
products such as “fusion products” derived from notebook
PCs and tablets and “local-fit” products designed to meet
specific regional needs. We also enhanced operational
efficiency by transferring part of the TV repair and
maintenance operations to a subsidiary, while continuing
our efforts to transfer quality control and production
management to our overseas facilities. We are seeking to
strengthen the cost competitiveness of our products by
reinforcing our TV production bases in emerging
economies and expanding outsourcing. Going forward, we
will continue to actively promote structural reforms and
strive to build a business structure that can secure a pro t
even in a severe business environment.
We are in the midst of transforming our business
structure from operations dependent on equipment sales
to operations based on collaboration with the cloud and
solutions businesses. In October 2012 we launched the
“Time On” cloud service that allows TV viewer to search
e ortlessly for highlight scenes of TV programs and share
the information of those programs via the internet. In
December 2012, we developed a new technology that can
automatically gather operational data and accumulated
failure logs, analyze them, and provide advance warning of
potential failure of HDDs. We will apply this technology to
admin tools in enterprise notebook PCs.
We strengthened our lines of high value-added
products by launching, in May 2012, Japan’s  rst tablet with
an organic EL display and, in June 2012, the “REGZA 55XS5”,
with a 4K2K LCD panel which has four times as many pixels
as a full HD panel. In PCs, we released, in June 2012, the
“dynabook R632”, the world’s lightest*1 and a super slim
UltrabookTM that achieved 7-second boot time, one of the
industry’s fastest*2. In October, we launched the “dynabook
R822”, a convertible UltrabookTM with a sliding display that
can be used as a tablet. Going forward, we will continue to
develop new products that will meet ever diversifying user
needs, and strengthen our enterprise business.
Business Review / Digital Products Segment
23
TOSHIBA Annual Report 2013