Toshiba 2013 Annual Report Download - page 28

This division was established in July 2011 and is responsible
for the provision of ODD (optical disk drive) such as DVD and
BD drives installed in notebook PC and other devices. The
ODD business is operated by a group company, Toshiba
Samsung Storage Technology Corporation, and this division
is involved in the management of the business.
In FY2012 we maintained the top share in the ODD
market, but sluggish growth in PC sales combined with
falling prices and reduced demand for ODD to produce net
sales that were lower than in the previous year. Going
forward we will accelerate our efforts to improve
profitability and aim to return to the black as soon as
possible.
ODD Division
Storage Business
At the start of FY2012, the balance of supply and demand
in the HDD market was tight, but then the effects of
declining demand for onboard equipment (particularly for
notebook PCs) weakened the market, and net sales ended
up at almost the same level as in the previous year. While
operating income fell slightly, we continued to ensure a
high level of pro tability.
The company is working to strengthen its integrated
storage business together with its memory business. To be
specific, in August 2012, by virtue of being first in the
*1: With a 1/2.3-inch image element
*2: As a built-in NAND  ash memory product. Based on in-house research as of February
2013.
*3: Based on in-house research as of April 2013.
*4: Based on in-house research as of June 2012.
*5: As a near-line HDD product. Based on in-house research as of December 2012.
*6: Based on in-house research as of September 2012.
world*4 to use NAND flash memory fabricated with
19-nanometer process technology, we started mass
production of SSDs for PCs that achieve the world’s lowest
level of power consumption while o ering read and write
speeds that are double those of conventional products. In
September 2012 we commercialized a “hybrid drive” that,
by integrating a 2.5-inch large capacity HDD with NAND
flash memory, secures read and write speeds
approximately three times those of our existing normal
HDD products. Furthermore, in December 2012, we
commenced sample shipments of 3.5-inch HDDs for
enterprise applications that boast a 4-terabyte storage
capacity, the industry’s largest class*5, an ideal storage
device for servers. The drives also feature enhanced
security encryption. In terms of external drives for the
consumers market, we expanded our market share by
releasing the high-capacity “CANVIO DESK” and the world’s
smallest and lightest*6 product, the “CANVIO SLIM”, in the
fall of 2012. The “CANVIO SLIM” has been praised for its
excellent design and won the “red dot design award” at the
“red dot design awards 2013” in Germany. In other news, in
the storage array  eld (high-performance external storage
devices for use with severs, etc.), we started sales in August
2012 of products that achieve high capacities and dramatic
improvements in performance while saving space and
delivering low power consumption.
Hybrid drive (image)
industry’s first*2 NAND Flash memories supporting
embedded memory standards that reduce development
burdens on mobile handset manufacturers. In March, we
started to ship samples of microSDHC memory cards that
store high-quality video images and that are compatible
with next-generation content protection technology. In the
same month we launched the “FlashAirTM” campaign for
SDHC cards with wireless LAN functionality, and we are
working to accelerate their market penetration. We retain
second place share*3 in the global NAND flash memory
market, and moving forward we will maintain this
leadership by continuing to accelerate process migration of
NAND flash memory products while promoting R&D in
next-generation memories, including 3D memories.
A diverse lineup of memory cards (C) '76, '13 SANRIO APPR. NO.S540812
Business Review / Electronic Devices Segment
26 TOSHIBA Annual Report 2013