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22 Yamaha Annual Report 2005
Review of Operations AV/IT
home theater systems as consumers seek a more
authentic audio experience to match the high quality of
the digital images. Yamaha expects to benefit as the
clear global leader in the field. Besides Japan and the
West, China is another market with huge potential in
home theater systems, with many forecasters expecting it
to become the second-largest market after the U.S.
Combining high quality sound and imaging,
Yamaha’s home theater systems provide a total enter-
tainment solution. In fiscal 2005, Yamaha introduced the
YSP-1 Digital Sound ProjectorTM. This revolutionary prod-
uct delivers real 5.1-channel surround sound from a sin-
gle, compact front-mounted unit, which eliminates the
rear-positioned speakers. With revolutionary technology,
Yamaha expects the YSP-1 to contribute strongly to the
future growth of AV equipment operations.
Another key product launched during the year was
the DPX-1200 digital cinema projector, with color repro-
duction capability and low noise design. The Music
CASTTM home music network system, which uses a
home-based server loaded with music and wireless LAN
technology to enable users to enjoy music in any room,
also received plaudits.
During fiscal 2005, Yamaha forged an alliance with
Klipsch Audio Technologies, the top manufacturer of
high-end speakers in the U.S. The alliance covers the joint
development of speakers and home theater systems,
sets up an exclusive distribution arrangement for Klipsch
products in Japan and also provides for sales coopera-
tion in markets outside Japan. The move bolsters the
positioning of Yamaha AV equipment in Japan and over-
seas markets.
The AV equipment market is fiercely competitive.
Product cycles are typically short. Yamaha’s strategy for
boosting profits in this field is to develop products that
specifically meet customer needs and launch them in a
timely fashion. To achieve this, Yamaha integrates the
management of core business processes from design,
development and purchasing to production, sales and
customer service. Strict supply-chain management span-
ning manufacturing bases in Japan, Malaysia, China and
Indonesia also ensures Yamaha stays competitive in
world markets.
Commercial network karaoke equipment
Yamaha develops and manufactures network karaoke
equipment for the Japanese market in conjunction with a
leading network karaoke provider. Although the market
for karaoke equipment is mature in Japan, the network
segment continues to grow. Recent widespread adoption
of broadband has spawned new uses for network
karaoke equipment. Besides downloading songs online,
users can utilize upstream capabilities to upload singing
data. This creates new possibilities for live auditions or
provision of performance feedback. With its high-level
expertise in sound production and distribution technolo-
gy, Yamaha is contributing to the development of
karaoke culture in novel value-added ways.
Routers
Higher penetration of ADSL and fiber-optic cable has
made high-speed Internet connections the commercial
norms. Yamaha targets home-based businesses and
small enterprises (including shops and branch offices).
Home music network system
MusicCASTTM