Sony 2001 Annual Report Download - page 20

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Sony Corporation Annual Report 2001
18
BUSINESS REVIEW: ELECTRONICS
BUSINESS REVIEW
During the year under review, Sony’s Electronics business continued to perform well. There was double-digit
top-line growth in each region, except Europe, where the euro weakened significantly against the yen.
Earnings increased sharply.
By product, strong sales gains were posted by PCs, digital video camcorders and digital still cameras,
semiconductors, mobile phones, and televisions (including large-screen projection televisions), among
others. Earnings were supported by strong sales in these products as well as by a rebound in earnings from
broadcast- and professional-use video equipment. Regarding inventories, although a downturn in demand
became apparent in the year’s second half, due to Sony’s aggressive efforts during the past winter to reduce
inventories, most product categories were at appropriate levels at the end of the fiscal year. However,
softening demand and steps to bring down inventories caused second-half profit growth to fall below the
first half’s growth rate. To cope with a challenging operating environment, Sony will concentrate on develop-
ing attractive products while rigorously managing inventories of products and parts.
Sales of VAIO PCs were very strong in all four geographic areas – Japan, the United States, Europe, and
Other areas. The number of units sold worldwide rose markedly during the year to 2.5 million. Earnings grew
significantly despite the effects of the yen’s appreciation. In Japan, a number of new models made their
debut. Several notebooks featured innovative design; some allow for wireless networking using Bluetooth™
Equipped with a Super Fine-Pitch FD
Trinitron flat-surface CRT for ultra-high
resolution, this Digital Wega television can
faithfully display Hi-vision programs beamed
via the BS digital broadcasts that began in
Japan in December 2000.