Outline of Main Products and Devices
1) LCD TVs and LCDs
In the second quarter of fiscal 2009, unit sales of LCD TVs were 2.39 million sets, up 19.6% from the previous quarter. Sales on a monetary basis were 166.9 billion yen, up 20.0%. In Japan, the government’s introduction of a subsidy program to award “eco-points” for the purchase of environmentally-friendly consumer electronics contributed to an increase in unit sales. Overseas, sales were strong in countries like China, where government stimulus packages helped boost sales. Despite the continuing tough economic climate, our LCD TV business returned to profit in the second quarter through aggressive efforts to reduce costs.
Sharp is taking steps to increase sales of uniquely featured products utilizing its proprietary technologies. These include new LCD TVs that incorporate a newly-developed next-generation LCD panel and an LED backlight system, to achieve better picture quality and lower power consumption. We are also focusing on LCD TVs 60 inches and larger, and on LCD TVs with built-in Blu-ray Disc recorders. Overseas, Sharp is striving to expand business and improve profitability by making products designed for specific markets, including China. This is to be achieved by actively promoting local production for local consumption.
Sharp’s forecast of LCD TV unit sales for the whole of fiscal 2009 is 10.00 million sets, about the same for the previous fiscal year, with sales of 670.0 billion yen, down 8.1% from the previous fiscal year.
Sharp believes that the favorable supply/demand balance for large-size LCDs will continue until at least the end of 2009, due to vibrant markets like China.
As well, Sharp has for some time now been promoting design-in activities with its customers. This has resulted in a large number of orders from these customers for 2010.
Amidst all this, the new LCD panel plant of Sharp Green Front Sakai* began operations in October 2009. Besides making panels for our AQUOS LCD TVs, the plant provides panels 40 inches and larger to strategic partners around the world.
We are producing optimum-size LCD panels at both the Kameyama No. 2 Plant and the LCD panel plant in Sakai City, thus improving our production efficiency.
For the whole of fiscal 2009, Sharp forecasts LCD sales of 945.0 billion yen, down 10.4% from the previous year.
*Sharp Green Front Sakai is the name used in Japan.
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2) Mobile Phones
In Japan, Sharp has introduced new products with proprietary devices, such as high-quality CCD cameras and solar panels. However, due to sluggish domestic market, the second quarter unit-based sales were 2.38 million units, down 13.2% from the previous quarter. On a monetary base, sales were 101.9 billion yen, down 18.1%. Compared to the same period in fiscal 2008, sales in the second quarter were about the same level.
Sharp plans to develop new functions that will spur users to upgrade to new models, as well as develop new products aimed at people looking to buy a second mobile phone. Sharp also aims to boost profitability by enhancing its line-up of affordable models to meet user needs.
In China, Sharp is introducing uniquely featured products to boost future business. For the whole of fiscal 2009, Sharp forecasts mobile phone sales of 480.0 billion yen, up 9.7% over the previous fiscal year, and 11.20 million units, up 12.9%.
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3) Solar Cells
The market environment is expected to remain tough in Europe, the major market for solar cells. However, markets in Japan and the U.S. appear set to grow dramatically. A new scheme of feed-in tariffs will start in Japan in November 2009, and the U.S. is in the midst of implementing measures to promote the installation of photovoltaic power generation systems. As well, with movements including the introduction of the feed-in tariffs in the U.K., the market appears on the verge of gradual improvement.
Against this background, Sharp is striving to boost business by concentrating on both crystalline solar cells, the main product in the current market, and thin-film solar cells.
The solar cell plant at Sharp Green Front Sakai is preparing to go on line. Using cutting-edge CVD equipment based on proprietary technology, Sharp will manufacture thin-film solar cells, which have the advantages of higher conversion efficiency and cost competitiveness.
For the whole of fiscal 2009, Sharp forecasts solar cell sales of 190.0 billion yen, up 20.9% over the previous fiscal year. Production volume will increase 82.9% to 770MW.
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