Sony 2001 Annual Report Download - page 22

Download and view the complete annual report

Please find page 22 of the 2001 Sony annual report below. You can navigate through the pages in the report by either clicking on the pages listed below, or by using the keyword search tool below to find specific information within the annual report.

Page out of 140

  • 1
  • 2
  • 3
  • 4
  • 5
  • 6
  • 7
  • 8
  • 9
  • 10
  • 11
  • 12
  • 13
  • 14
  • 15
  • 16
  • 17
  • 18
  • 19
  • 20
  • 21
  • 22
  • 23
  • 24
  • 25
  • 26
  • 27
  • 28
  • 29
  • 30
  • 31
  • 32
  • 33
  • 34
  • 35
  • 36
  • 37
  • 38
  • 39
  • 40
  • 41
  • 42
  • 43
  • 44
  • 45
  • 46
  • 47
  • 48
  • 49
  • 50
  • 51
  • 52
  • 53
  • 54
  • 55
  • 56
  • 57
  • 58
  • 59
  • 60
  • 61
  • 62
  • 63
  • 64
  • 65
  • 66
  • 67
  • 68
  • 69
  • 70
  • 71
  • 72
  • 73
  • 74
  • 75
  • 76
  • 77
  • 78
  • 79
  • 80
  • 81
  • 82
  • 83
  • 84
  • 85
  • 86
  • 87
  • 88
  • 89
  • 90
  • 91
  • 92
  • 93
  • 94
  • 95
  • 96
  • 97
  • 98
  • 99
  • 100
  • 101
  • 102
  • 103
  • 104
  • 105
  • 106
  • 107
  • 108
  • 109
  • 110
  • 111
  • 112
  • 113
  • 114
  • 115
  • 116
  • 117
  • 118
  • 119
  • 120
  • 121
  • 122
  • 123
  • 124
  • 125
  • 126
  • 127
  • 128
  • 129
  • 130
  • 131
  • 132
  • 133
  • 134
  • 135
  • 136
  • 137
  • 138
  • 139
  • 140

Sony Corporation Annual Report 2001
20
intend to establish a 50-50 joint venture that will handle product research, design and development, as well
as marketing, sales, distribution, and customer services. The new company intends to grow by drawing on
Ericsson’s leading-edge telecommunications technology and Sony’s expertise in technology for consumer
electronics products.
In semiconductors, demand expanded significantly in all product categories, notably digital signal process-
ing LSIs, CCDs, analog devices, and LCDs. This led to strong growth in sales and earnings. As semiconductors
require huge investments, Sony outsources some production activities. In another step to boost efficiency,
supply chain management will be improved through the April 2001 formation of Sony Semiconductor Kyushu
Corporation, a platform for semiconductor design and production activities. Resources will be channeled to
imaging devices and other product sectors where we are competitive, as Sony pursues a policy of focusing on
key businesses. For example, Sony is investing ¥100 billion over a 5-year period to establish a new facility in
Kumamoto Prefecture, Japan, that will begin full-scale production during the year ending March 2003 of CCDs
and high-temperature polysilicon TFT LCDs, demand for which is expected to expand significantly.
In the business of televisions and projection televisions, large increases in sales of Wega televisions,
Sony’s pioneering line of models with flat-surface cathode-ray tubes (CRTs), and large-screen projection
televisions lifted the overall sales and earnings of this business. In televisions, Sony maintains a substantial
edge in terms of cost due to its early moves towards global manufacturing of flat-surface CRTs and other
initiatives. In projection televisions, Sony is constantly refining its line-up. Underpinning these efforts is
expertise in producing sharp images thanks to exclusive picture-quality technology and the use of high-
grade picture tubes, LCD panels, and other key devices produced within the Sony Group.
ORGANIZATIONAL CHANGES
To strengthen its position as the global leader in the consumer electronics field, during the year, in addition
to realigning its production facilities, Sony strived to realize the convergence of AV and IT and strengthen its
“four network gateways” strategic product groups: digital TVs/set-top boxes, VAIO PCs, PlayStation 2, and
mobile communications products. To further reinforce the operating base, the entire Electronics business
was reorganized in April 2001.
Headquarters for the Electronics business, now independent of the Sony Group head office, will place priority
on establishing a common vision for its business units and making that vision a reality. At the same time, three
platforms – design and production, sales, and technology – were positioned as common bases to support the
growth of all internal Network Companies and raise the efficiency of the entire Electronics business.
Seven Network Companies have been formed from the previous five. Guiding the realignment were links