sustaining profitable growth in the consumer business · sustaining profitable growth in the...
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Sustaining Profitable Growth inthe Consumer Business
Leon HussonExecutive Vice President Consumer Businesses
Philips SemiconductorsFinancial Analysts Day 2004
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Semiconductors 2
Agenda
• Business update
• The Connected Consumer’s journey
• Enabling the Connected Consumer
• Summary
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Semiconductors 3
Analog CTV30%
New Display technologies
8%
Digital CTV4%
Audio16%
Remaining11%
Automotive21%
DVD recorder10%
Source: Philips, 2004
Consumer business in 2004By application
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Semiconductors 4
Greater China32%
Americas9%
Europe31%
Asia28%
Source: Philips, 2004
Consumer business in 2004By region
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Semiconductors 5
Consumer business growth above 25% in 2004
• #1 in FM radio chips for handheld devices, 100 Million pieces sold
• #1 in portable digital audio with 25% market share
• #1 in car radio with 35% market share
• #1 in TV add-on cards for PC with 40% market share
• #2 in DVD recording with 20% market share
Source: various/Philips, 2004
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Semiconductors 6
Continued global leadership in TV
• Record of 80 Million TV engines sold on market of 170 Million
• Connected HD TV introduced with Philips
• Picture improvement solutions for premium range LCD, PDPand DLP products
• UOCIII introduction to leading brands
• Introduction of worlds first One-Chip LCD TV
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Semiconductors 7
TV505 reference design - One chip LCD TV
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Semiconductors 8
Nexperia HomeSuccesses today
• Almost doubled Nexperia Home sales in 2004, close to 15% of Consumer sales is Nexperia
• Nexperia solutions continue to enable growing consumer markets
– Strong position in growing DVD recording market
– Superior Audio/Video performance is key for LCD TV
– Entry into the horizontal STB markets in Europe and China
– Continuing roll-out of digital reception TV solutions in Europe
– Strong offering for emerging ATSC market
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Semiconductors 9
TV810 reference design - fully integrated DTV
• Industry’s only fully integrated DTV reference design –analog plus digital !
• Will support coexistence of analog and digital TV for many years
• Significant space and cost reduction compared to bolt-on solutions
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Semiconductors 10
Agenda
• Business update
• The Connected Consumer’s journey
• Enabling the Connected Consumer
• Summary
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Semiconductors 11
The Connected Consumer in the living room today
• Digital Storage and Retrieval: DVD recording
• Digital Displays: LCD-TV
• Digital Broadcast and Broadbandtaking off
• First experiences with connectivity, such as USB, IEEE1394 and WiFi
• Links to the mobile world
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Semiconductors 12
The digital home centered around the Connected Consumer
Internet
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Semiconductors 13
Meeting Connected Consumers’ requirements
Designed around you• Designed around the needs for
personal content management• Living room prices
Easy to experience• Easy to install, easy to use• Evolutionary path: new devices
and features one at a time
Advanced• Advanced video and audio quality• Design for the right look and feel
Provide for the Connected Consumer
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Semiconductors 14
Agenda
• Business update
• The Connected Consumer’s journey
• Enabling the Connected Consumer
• Summary
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Semiconductors 15
• Nexperia Home
• Interoperability through common API
Enabling the Connected Consumer
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Semiconductors 16
Nexperia Home is here and now
• Nexperia enables– Fast time-to-market– Future proofing – “Living room” prices
• Nexperia Home provides a consistent architecture to deal with convergence devices – Connected TV– DVD/HDD combinations– STB/PVR– Media adapters
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Semiconductors 17
Connectivity
RFIDBluetooth Wi-Fi
1394 WiMAX UWB
USB HDMI Ethernet
NFC
HomeAV Processing
Broadcast
PAL SECAM NTSC
DVB ATSC ISDB
Terrestrial Satellite Cable
StorageStorage
CD DVD BluDisk
HDD FlashCards
OutputOutput
LCD/PDPDisplay
CRTDisplay Speakers
Headphones
Middleware &Application software
Dis
play
Pro
cess
ing
AV
Enc
odin
g &
Dec
odin
g
Nexperia Home
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Semiconductors 18
Connectivity
RFIDBluetooth Wi-Fi
1394 WiMAX UWB
USB HDMI Ethernet
NFC
HomeAV Processing
Broadcast
PAL SECAM NTSC
DVB ATSC ISDB
Terrestrial Satellite Cable
StorageStorage
CD DVD BluDisk
HDD FlashCards
OutputOutput
LCD/PDPDisplay
CRTDisplay Speakers
Headphones
Middleware &Application software
Dis
play
Pro
cess
ing
AV
Enc
odin
g &
Dec
odin
g
Nexperia HomeAnalog CRT TV
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Semiconductors 19
Connectivity
RFIDBluetooth Wi-Fi
1394 WiMAX UWB
USB HDMI Ethernet
NFC
HomeAV Processing
Broadcast
PAL SECAM NTSC
DVB ATSC ISDB
Terrestrial Satellite Cable
StorageStorage
CD DVD BluDisk
HDD FlashCards
OutputOutput
LCD/PDPDisplay
CRTDisplay Speakers
Headphones
Middleware &Application software
Dis
play
Pro
cess
ing
AV
Enc
odin
g &
Dec
odin
g
Nexperia HomeAnalog LCD TV
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Semiconductors 20
Connectivity
RFIDBluetooth Wi-Fi
1394 WiMAX UWB
USB HDMI Ethernet
NFC
HomeAV Processing
Broadcast
PAL SECAM NTSC
DVB ATSC ISDB
Terrestrial Satellite Cable
StorageStorage
CD DVD BluDisk
HDD FlashCards
OutputOutput
LCD/PDPDisplay
CRTDisplay Speakers
Headphones
Middleware &Application software
Dis
play
Pro
cess
ing
AV
Enc
odin
g &
Dec
odin
g
Nexperia HomeDigital advancedLCD TV
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Semiconductors 21
Connectivity
RFIDBluetooth Wi-Fi
1394 WiMAX UWB
USB HDMI Ethernet
NFC
HomeAV Processing
Broadcast
PAL SECAM NTSC
DVB ATSC ISDB
Terrestrial Satellite Cable
StorageStorage
CD DVD BluDisk
HDD FlashCards
OutputOutput
LCD/PDPDisplay
CRTDisplay Speakers
Headphones
Middleware &Application software
Dis
play
Pro
cess
ing
AV
Enc
odin
g &
Dec
odin
g
Nexperia HomeAdvancedDVD Recorder
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Semiconductors 22
Sof
twar
e co
de s
ize
1 KB
10 KB
100 KB
1 MB
10 MB
Source: Philips Research Archives
100 MB
“Moore’s law of so
ftware”
The importance of software in the TV
No SW
1970
2048 KB64 KB1 KB
1985 1990 1995 20001975 1980 2005 2010
20MB
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Semiconductors 23
The Nexperia Home Partner Program
• Announced in December 2003
• A variety of leading Independent SoftwareVendors (ISVs) create middlewareand application software for theConnected Consumer
• System Integration partnersprovide customized turnkey solutions with fast time-to-market
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Semiconductors 24
Enabling the ecosystem
Industry standards for maximizing economy of scale
• Universal Home API (UHAPI)– Hardware-independent API allowing interoperability
between semiconductor platforms and ISV software– Announced in January 2004 by Samsung & Philips– UHAPI Forum will be launched soon with leading CE
and PC companies from all major regions– Nexperia Home is fully UHAPI compliant
• Linux Operating System– De-facto OS for emerging categories of
connected products– CE Linux Forum optimizes Linux
applicability in the CE space
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Semiconductors 25
Agenda
• Business update
• The Connected Consumer’s journey
• Enabling the Connected Consumer
• Summary
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Semiconductors 26
In summaryIn summary
• Our Consumer business is outgrowing the market• The Connected Consumer creates, shares, enjoys content from
broadcast, broadband and personal sources• Philips and its partners are driving the required standards and
ecosystems• Philips Nexperia based solutions are powering the
Connected Consumer today
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