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AV/IT
14 YAMAHA CORPORATION
end of March 2003, recognizing
that achieving sales growth would
be difficult in the face of falling unit
prices, the proliferation of DVD
equipment, and the increasing avail-
ability of personal computers with
built-in CDR-RW drives.
Strategies and Forecasts
In fiscal 2004, in our home theater
business, we will strive to boost sales
of AV amplifiers and receivers, two
of our strongest product lines; achieve
sales growth in line with our “strategy
to be number one in home theaters,”
which calls for introducing home
music network systems; enhancing
visual products; and developing
inexpensive system products tailored
to customer needs. In routers, we plan
to expand sales of our competitive
commercial-use products for system
integrators and SOHO.
In China, where substantial growth
is expected, Yamaha Electronics
(Suzhou) Co., Ltd., launched manu-
facturing operations in March 2003
and plans to spearhead the YAMAHA
Group’s penetration of the Chinese
market, thus contributing to further
growth.
In fiscal 2003, sales in the AV/IT
Segment amounted to ¥83.7 billion,
adecrease of 12.1% compared with
the previous term, and operating
income totaled ¥3.2 billion, a
7.0% increase.
Driven by an expanding market,
sales of home theaters grew slightly
from the previous term. However, in
AV amplifiers and receivers, although
YAMAHA has a large share of the
market, competition continues to
intensify, especially in the United
States, as falling unit prices, the
increased availability of products
with built-in DVDs, and other factors
continue to reshape the market. With
these changes taking place, the
Company is adapting products to
market needs in an effort to achieve
growth in the market for home the-
aters. In CDR-RW drives, sales
decreased dramatically from the pre-
vious term, reflecting not only a drop
in sales volume, but also a fall in the
price per unit sold due to fierce com-
petition. In routers, sales were con-
sistent with those of the previous
term, thanks to the implementation
of a new business model calling for
products designed to accommodate
the needs of corporations as well as
small offices and home offices
(SOHO).
Income increased from the previ-
ous term due to currency exchange
gains and other factors.
Due to the factors mentioned
above, YAMAHA decided to close
its CDR-RW drive business at the