Wacom 2004 Annual Report Download - page 7

Wacom Annual Report 2004 5
OUR THREE STRENGTHS
Our greatest strength lies in the advanced technologies we used
when developing the original pen tablets, which were the first
tools capable of battery-free and cordless computer input.
The electromagnetic induction system---one of our core
technologies---creates an electromagnetic field on the surface of
the pen tablet. As the pen moves across the tablet, it generates
an electric current with its built-in coils, and then it sends a series
of induction signals to the tablet. As this process repeats itself,
the tablet reads the pen's movements and translates it to the
software. The electronic pen is capable of detecting minute
changes in pressure and tilt, which alters the thickness of lines
and color shades. The system also offers another major
advantage with its eraser function.
Wacom currently possesses a total of 469 registered and
pending basic and peripheral patents worldwide, mainly in
connection with its ESD products.
Wacom boasts the largest share of the global market for pen tablets.
Our pen tablet products are the de facto standard among computer
designers of all stripes and have proved indispensable to people in
the global motion picture, animation, design, and computer game
industries. At present, we possess a market share of 96.4%* in Japan
and approximately 70%** abroad.
We refer to our collective pen-inputting sensor technology and
integrated LCD panel technology---both are used within our pen
tablet products---as Wacom Penabled Technology, and we supply it
on an OEM basis to various electronic system sectors. Most computer
manufacturers have adopted our sensor technology for use in their
tablet PCs. Furthermore, we also have the No.1 market share in Japan
in the field of electronic CAD (computer-aided design).
* Based on 2004 survey by BCN, Inc.
** Based on Wacom estimate
Product Brand Representing No.1 Global
Market Share
Wacom Tech. Corp.
Wacom Co., Ltd.
Wacom Digital Solutions
Co., Ltd.
Wacom China Corp.
Wacom Components
Europe Ltd.
Wacom Europe GmbH
Wacom 96%
Others 4%
Wacom 70%
Others 30%
2004 2004
Intellectual property rights
Registered
Applied
Total
2
-
2
303 (177)
166 (63)
469 (240)
212 (129)
11 (8)
223 (137)
As of March 31, 2004
Global Business Presence
Unrivaled, State-of-the-art Technology
Global market share Domestic market share
Source: Business Computer News (BCN)
34 (14)
9 (3)
43 (17)
Patents Utility models
Registered trademarks Registration of designs
High technological skills
Market demand for our graphics tablet products is
expanding not only in Japan, but also in the U.S.,
Europe, and elsewhere in Asia. Since our firm's
inception, we have developed our business in the
global markets while establishing an optimal R&D
and sales framework in various countries around
the world. We have built a platform for marketing
our products worldwide by establishing sales
subsidiaries in Germany in 1988, in the U.S. in 1991,
in China in 2000, and in South Korea in 2004 (all of
which have since become consolidated
subsidiaries). As a result, the percentage
composition of our sales by region is as follows:
54.9% for Asia (including Japan), 25.9% for North
America, and 19.2% for Europe.
We have also sought to optimize our R&D
activities through regional specialization: hardware
(including pen tablets) in Japan and software
(including drivers) in the U.S. We enhanced our
global business presence further by establishing
Wacom Components Europe Ltd. (presently a
consolidated subsidiary) in 2001 in Cambridge,
U.K., as our new marketing/R&D base for pen
sensor components. A number of R&D facilities for
European mobile phone manufacturers are
concentrated in Cambridge.
Figures in ( ) are overseas numbers
Source: Wacom's estimate
Sydney Office
Singapore Office
Taipei Office