Sony 2006 Annual Report Download - page 13

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11
screens—are brisk, allowing us to maximize the benefits of seventh-
generation TFT LCD panels. Looking at the rapid market penetration
of LCD televisions, we can expect demand to continue increasing
going forward. Accordingly, we will strive to improve the profitability
of LCD televisions by developing differentiated technologies and
enhancing the efficiency of our engineering system.
In the area of rear-projection LCD TVs, we will take steps to
lower manufacturing costs, including expanding procurement
of principal parts to include suppliers in China. We will also
enhance our product lineup by introducing models mounted with
Sony’s exclusive Silicon X-tal (“crystal”) Reflective Display (SXRD™)
device, which achieves outstanding resolution, contrast and
responsiveness.
What can you tell us about the two growth
strategies you have referred to as “HD World” and
“creating value through new product categories”?
Sony has an extensive range of highly respected broadcast- and
consumer-use high-definition (HD) hardware. The Electronics
Revitalization Plan’s first strategy is to further expand our efforts
to promote the transition to HD.
From our perspective, demand for HD products is brisk in the
consumer market as well. This is illustrated by the popularity of
products like the consumer-use HDR-HC1 Handycam® high-
definition camcorder, introduced in 2005, sales of which have
vastly exceeded our initial plan. Sony is a global leader in the HD
arena and is thus well positioned to maximize its technological
strengths. Against a background of rising demand for HD in the
consumer electronics market, in 2006 we plan to launch our
first Blu-ray Disc player in the United States. We also plan to
introduce a VAIO™ PC with a Blu-ray Disc drive. We expect the
Blu-ray Disc format will be a driver of growth for HD-related
businesses. Sony is the only company positioned to offer both a
broad selection of HD hardware and a large library of HD content.
Our goal is thus to grow this HD-related business into a major
profit pillar.
We also have high hopes for the growth of product categories
that create new value as a result of added communications functions.
To date, we have thrilled customers with exciting offerings like
Trinitron™ color televisions as well as Walkman® and Handycam®
products. These products share certain attributes, such as superb
quality, attractive appearance, compact size and light weight, and
have created value by inspiring an emotional response in customers.
11