delivering in consumer - philips same consumer price point as the analog ... one-chip tv • we...

Delivering in Consumer

Leon HussonExecutive Vice President Consumer BusinessesSemiconductor Division

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Delivering in consumer

• The last 12 months• Philips Semiconductors consumer businesses• Recent developments in Nexperia Home• Audio• Summary

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September 12, 2002what we said

Many emerging Connected Consumer applications will beunderpinned by Nexperia Home

• Our strategy for consumer business growth will be driven by a focus on:

Digital TV LCD TV DVD recorder

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Where are we today• We have delivered Nexperia

Home solutions for DTV, LCD TV and DVD recorders to leading customers

• We have strengthened our presence in China

• Our focus market areas are growing even faster– DTV is growing as expected– LCD TV is taking off fast:

130% increase in units shipped in the last 12 months (source: iSuppli)– DVD recorders are the fastest developing consumer product ever:

1.3 Million units shipped in 2002, 4.6 Million in 2003• DVD+RW is the leading standard in Audio/Video in Europe• DVD+RW is the de-facto standard in the PC industry

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Consumer Businesstop positions

Source: Philips, 2003

TV

DVD Recorder

Media access (tuners/decoders)

Digital audio

Car access

Car infotainment

#1

#3

#1

#2

#1

#2

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Consumer Businessby application


Digital CTV4%

New display technology

DVD Recorder 7%

Automotive 21%

Remaining 11%

Audio 10%

Analog CTV38%

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Consumer Businessby region

Greater China28%

Asia (excl. China)29%

Europe33%

America10%


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0

20

40

60

80

100

120

140

160

180

200

2003 20060

500

1,000

1,500

2,000

2,500

3,000

3,500

4,000

2003 2006

DTV market growing continuously

Total TV set market - volumes Total semiconductor value

Source: I-Suppli / SRI / Philips, June 2003

Analog Digital

Mill

ion

units

$ M

illio

n

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What is new in DTV

• Strong market drivers in DTV:– Features: Connectivity & Multimedia – Display Performance– Digital transmission: DVB-T, ATSC, ISDB

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Governmental push for DTV

Governmental support for digital transmission

• US: FCC mandate applicable from mid 2004 / ATSC

• Europe/UK: DTV through MHP/MHEG

• Japan: launch of ISDB terrestrial by end 2003

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Successes with Nexperia Home in DTV

Realizing major benefits• Nexperia Home enables digital receivers at

the same consumer price point as the analog equivalent

• Flexible transition from analog to digital TV– Low-cost converter boxes– IBO (Intelligent-Bolt-On) solutions for Analog TV– Fully Integrated digital TV

Philips, Sony and Sharp have recently launched new TVs based on Nexperia Home

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0

1,000

2,000

3,000

4,000

2003 2006

LCD TV market growing rapidly

0

20

40

60

80

100

120

140

160

180

200

220

2003 2006

Total TV set market - volume Total semiconductor value

Source: I-Suppli / SRI / Philips, 3Q 2003

CRT tubes LCD panels

Mill

ion

units

$ M

illio

n

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What is new in LCD TV

The LCD TV market is growing faster than expected:• Average selling price will fall from $ 1,750 in 2002 to $ 950 in 2004• Sweet spot moves from 15” to 20” with clear trend towards 30”

Source: I-Suppli / SRI, 3Q2003

Consumers have recognized LCD TV as a ‘must have’

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Successes with Nexperia Home in LCD TV• LCD TV makers like Philips and Sharp have

selected Nexperia Home– We are building on our global #1 position in

One-Chip TV

• We offer full LCD TV system functionality– Tuner to display drivers– Analog and digital– Best in class picture improvement– Connectivity

• We offer complete reference designs from low-end to high-end LCD TV

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The DVD recorder domainWe offer Nexperia Home solutions for

DVD video recorder DVD data recorder

Market is driven by costs Market is driven by speed

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The sharp increase in worldwide DVD video player and recorder shipments by segment and product, 2001-2006

DVD video recorder market growing rapidly

Source: IDC, 2003

Total DVD video market - volume Total semiconductor value

DVD video players DVD video recorders

Mill

ion

units

$ M

illio

n

-

500

1,000

1,500

2,000

2,500

2002 2003 2004 2005 20060

20

40

60

80

100

120

2002 2003 2004 2005 2006

CAGR 2002-2006 = 128%

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What is new in DVD video recorders

• Low cost, basic features DVD video recorders are starting to replace the VCR

• Feature rich DVD video recorders are evolving into home entertainment centers through: – Connectivity and hard disc– Home theater in a box

functionality0

500

1000

1500

2000

2500

2002 2003 2004 2005 2006

$ M

illio

nVCR

DVD videorecorders

Source: I-Suppli / IDC, 2003

Total semiconductor value

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DVD data recorder market grows rapidly

Source: IDC, 2003

Total DVD data market - volume Total semiconductor value

DVD data players DVD data recorders

Mill

ion

units

$ M

illio

n

-

500

1,000

1,500

2,000

3,000

2002 2003 2004 2005 20060

10

20

30

40

50

70

2002 2003 2004 2005 2006

602,500

CAGR 2002-2006 = 58%

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What is new in DVD data recorders

• DVD+RW has become the de-facto standard– Endorsed by HP, Dell and Microsoft

• DVD+RW data market is moving fast into mainstream PC

• Global market will double from 2003 to 2004

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Successes with NexperiaHome in DVD recorders

• 28% of all DVD video recorders sold in 2003 will be based on Nexperia Home– 7 out of 10 DVD+RW video recorders based on

Nexperia Home

• We will have 30% share of the DVD data recorder market by Q4 2003

• PC leaders like HP acquire drives from our customers

• We are leading the speed race:

2004Q2 2004Q12003Q32003Q2

16X12X8X4X

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Nexperia Home and Connectivity

• We offer flash memory connectivity like Memory Stick on Nexperia Home

• Nexperia Home enables flexible feature integration:– Access to broadband content

– Content editing

• Nexperia Home can bridge the PC-CE gap– Software media processing addresses all evolving

standards

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AudioEnhancing the consumer experience • 1 out of 3 cars worldwide

includes Philips car radio chipsets• 1 out of 4 MP3 players

has a Nexperia solution that entertains you on the go

• 1 out of 4 Home Theater in a Box uses our Class-D amplifiers to rock you at home

• 1 out of 3 TV’s in the world uses our audio amplifiers

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Summary

Nexperia Home:• Delivers Connected Consumer applications at the

right consumer price point• Enables flexible and cost effective solutions for

– The transition from analog to digital TV for all display formats– DVD recorders from low-cost VCR replacement to

home entertainment hubs– Integration of a broad range of features from picture

processing, connectivity, content editing to browsing • Is selected by leading customers

delivering in consumer - philips same consumer price point as the analog ... one-chip tv • we...

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