Yamaha to Withdraw From CD-R/RW Business
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Tokyo, February 5, 2003 – Yamaha Corp. decided at a board meeting to cease sales of CD-R/RWs for personal computers and to withdraw completely from the business by the end of March 2003. Since Yamaha entered the CD-R/RW market in April 1994 its products have consistently led the industry in drive speeds and won recognition for their high performance and quality.
However, amidst high competition and rapidly falling sales prices, the middle and high-end products market, which Yamaha had been targeting, has shrunk dramatically. Additionally, the market has seen DVD-compatible devices and personal computers with installed CD-R/RW drives become the norm.
In light of this situation the Company had been working to leverage high sound quality technology and installation of direct print-in drive technology to maintain competitiveness. Yet under the current market conditions the Company deemed that it would be imprudent to continue operations and to make further investments.
Yamaha has therefore decided to cease sales of CD-R/RWs, to strengthen existing businesses such as home theaters, and to develop new businesses using technology the Company has acquired over the years. Yamaha will maintain its after-sales support services for users and clients who have already purchased its CD-R/RW products.
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1. Nature of the Decision
Withdrawal from PC CD-R/RW operation
2. Time of Withdrawal
The end of March 2003
3. Current Sales
Approximately 7.2 billion yen (forecast for the end of March 2003)
4. Affected Amount
(Losses) 1 billion yen resulting from withdrawal
5. Influence on employment
(Japan) Shifting into fast growing new business areas.
(Overseas) Minimal adjustments will be made to the number of employees.
6. Upcoming AV/IT operation deployment
The Company will expand its visual products business by promoting popular home theater products, the market for which has grown in recent years. Increased focus on digitization and networking including broadband compatibility by using technology accumulated from AV and IT business.
The Company will target Japan, US and Europe, followed by China, where Yamaha will begin full-scale operations from March. The Company will continue to deploy and market its original high added-value products.
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For more information, please contact:
YAMAHA CORPORATION
Corporate Communications Group,
Public Relations Division
2-17-11 Takanawa, Minato-ku,
Tokyo 108-8568
TEL +81-3-5488-6601
FAX +81-3-5488-5060
Visit Yamaha's website at
http://www.global.yamaha.com/index.html