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Outline of Main Products and Devices
1) LCD TVs and LCDs
Sales of LCD TVs were 156.0 billion yen, up 12.1% from the same period last year. On a unit basis, sales were 2.69 million sets, up 34.4%. In Japan, although unit prices declined, unit sales were strong, reflecting the continuation of the Eco-Point Program, the Japanese government’s subsidy program introduced in May 2009 that awards “eco-points” for the purchase of environmentally-friendly consumer electronics. Overseas, sales increased primarily in the European and Chinese markets.
From the second quarter onward, Sharp will highlight its proprietary four-primary-color technology and the 3D world in a full-scale product launch of AQUOS Quattron and AQUOS Quattron 3D TVs announced recently. Sharp will continue to work to expand sales both in Japan and overseas.
For large-size LCDs, the supply/demand balance in the first quarter remained favorable against a backdrop of growing demand for LCD TVs in emerging countries and increasing demand for PCs. In particular, demand is increasing for high-definition, high-brightness panels in the face of faster-than-expected growth in sales of LED TVs and 3D TVs. In response, Sharp has developed an LCD panel optimized to display 3D images featuring low crosstalk and high color reproducibility. This panel is based on Sharp’s proprietary UV2A technology, combined with other one-of-a-kind technologies including four-primary-color technology and FRED technology.
In addition, Sharp increased its input capacity of glass substrates at its state-of-the-art LCD panel plant at GREEN FRONT SAKAI, from 36,000 sheets per month when the plant started operations in October 2009, to 55,000 in May 2010, and to 72,000 in July 2010. The plant has an advantage in terms of manufacturing LCD panels based on Sharp’s proprietary technologies.
However, concerns are being raised in the marketplace about the increase in panel inventories, and due to this, there is uncertainty about panel demand forecasts for the second half of the fiscal year. Sharp will strive for a flexible response while keeping a close eye on market trends, and will be working to maintain appropriate inventory levels and improve profitability.
The challenging market environment for small- and medium-size LCDs is expected to continue during the first half of the fiscal year, as a result of stagnation in existing applications. However, a wide variety of new products, which are expected to become new applications for small- and medium-size LCDs, are slated to be launched in the second half. In particular, game devices, e-books and smartphones are receiving much attention in the market. Our high value-added LCDs, such as 3D LCDs, are suitable for these products and are expected to become the mainstay of our small- and medium-size LCD business. Sharp will work to open up new markets by taking full advantage of its proprietary technologies, with the goal of rebuilding its small- and medium-size LCD business.
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2) Mobile Phones
Sales of mobile phones were 133.6 billion yen, up 7.4% over the same period last year. On a unit basis, sales were 3.34 million units, up 21.9%. In Japan, the market environment for mobile phones remains challenging. Nevertheless, we were able to maintain steady sales and profits during this period.
For fiscal 2009, Sharp retained the number one share in the Japanese market for the fifth consecutive year. Sharp will continue to work to create new uniquely-featured products designed to match user needs. In the Japanese market, percentage of smartphone sales is increasing. Going forward, Sharp will be strengthening its lineup of handsets equipped with an open source OS, and this will lead to growth in its smartphone business as well as improved profitability.
Internationally, Sharp will be working to further expand sales by introducing mobile phones matched to market needs, mainly in the Chinese market.
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3) Solar Cells
Sales of solar cells were 57.6 billion yen, up 65.7% over the same period last year and production volume was 258 MW, up 89.7%. Sales of solar cells increased steadily in Japan, where the government subsidy programs for the installation of residential photovoltaic power generation systems had a positive effect, and also in the U.S., where the full-fledged implementation of Green New Deal policies are progressing. In Europe, Sharp’s major market, the severe business environment continued, including emerging financial turmoil and an accelerating depreciation of the Euro. Sales in Europe increased, however, compared to the same period last year.
In March 2010, Sharp began production of thin-film solar cells at its solar cell plant at GREEN FRONT SAKAI. To cope with burgeoning demand expected to result from the increasing number of mega solar power generation projects, Sharp is working to keep stabile operations and improve production efficiency. The plant at GREEN FRONT SAKAI will also be supplying thin-film solar cells to fill orders from the recently announced, the world’s largest* solar power generation plant to be constructed in Thailand. Our production joint venture project in Italy with Enel Green Power and STMicroelectronics is progressing steadily, and subsidies from the Italian government have been officially approved recently.
Meanwhile, to meet the growing demand for crystalline solar cells, module production capacity in the U.K. will be gradually increased, starting in December 2010, from the current level of 250 MW per year to 500 MW by February 2011.
Going forward, Sharp will work to expand sales of both crystalline and thin-film solar cells. In addition, to strengthen cost competitiveness and build a framework to rapidly supply these products, Sharp will deploy a local production for local consumption business model.
* As of July 1, 2010
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