Let's note and soaring prices of materials are not passed on to product prices. Why is the 14-inch notebook unexpectedly strong?

Panasonic's Let'snote has been selling well since January 2022. In particular, the Let'snote "FV1" series has been selling five times as much as the conventional model since its launch in June 2021, and Mr. Hiroaki Sakamoto, Vice President of Panasonic Connected Solutions Company, is expected. In the above sales, "There was a part in us that decided that Let'snote is a 12-inch mobile. However, with the FV1 series, Let'snote also exists in new areas of 14-inch and above. It turned out that I could demonstrate the feeling. I would like to actively develop it to meet the needs of large screens in the future. " [See another image of this article] It can be said that we have achieved great results toward the annual shipment of 1 million units in 2025, which will accelerate the creation of the ground. On the other hand, he also showed that the soaring price of materials is not reflected in the product price. We spoke with Vice President Sakamoto about the business strategies of Let'snote and Toughbook. ■ Demand is strong, but due to lack of parts, his Panasonic Let'snote released the first product "AL-N1" in June 1996, and this year marks the 25th anniversary. .. "Until the second half of 2020, actual demand was declining due to the impact of the Korona-ka, but in 2021, demand returned and remained relatively favorable in the first half of 2021. However, from August 2021, parts There was a delay in the procurement of the product, and in October we were unable to deliver the product. " In particular, the market supply of toughbooks was delayed. "Although the shortage of parts for Let'snote has almost been resolved, the toughbook has been affected by semiconductors. Although it has recovered to about 80% now, it has not reached the point where it has safety stock. In China. The impact on the supply chain is unpredictable due to sudden lockdowns. The impact of the shortage of semiconductor supply is expected to continue for the entire 2022. It will continue for a year with various ingenuity so as not to spend it. " Worldwide shipments of Let'snote and Toughbook in 2020 were about 770,000 units, but the actual result in 2021 is likely to be about 730,000 units, down 5% from the previous year. At the beginning of the year, the plan was 820,000 units, but it will be much lower than this. The biggest reason is that the shortage of parts prevented us from supplying the market with products that could meet the demand. However, the domestic PC market as a whole has been declining by about 40% from the previous year in 2021, and it can be said that the decline is small compared to that. The reason is that there is a special demand for the GIGA school concept in 2020, and it is a reaction to that in 2021. However, it can be said that Let'snote, which was not affected by this, originally set out a plan different from that of other companies, which exceeded the previous year's results, and if there was no shortage of parts, it could have exceeded the previous year's results as planned. ■ Sales of the FV series are five times higher than before. And what I would like to pay attention to is that since January 2022, there has been a movement to make a comeback. According to Vice President Sakamoto, the outlook for the fourth quarter of 2021 (January-March 2022) is about 240,000 units, which is expected to grow by 14% year-on-year. This is in contrast to the overall domestic PC market, which is expected to decline by more than 60% in the fourth quarter. It is also worth noting that about one-third of the annual shipment forecast of 730,000 units is concentrated in this quarter. "This momentum is likely to continue toward 2022," said Vice President Sakamoto, confident in his response. There are two reasons why Let'snote is doing well. One is that products that could not be delivered by December 2021 were delivered in January. The problem of parts shortage continues to be tough, but the situation of parts procurement has recovered slightly, and this has been added to the actual results since January. And another reason is that the Let'snote FV series has been selling five times as much as the conventional model LV series since its launch in June 2021, and the momentum has been increasing since January 2022. The point is that it is continuing. Vice President Sakamoto laughed, "The FV series was a confident work, but we were surprised at how well it sold." "The FV series is not in time for production until March 2022." This continues, not because of the shortage of parts in the Korona-ka, but because of more demand than expected. " The FV series is equipped with a 14-inch liquid crystal display with an aspect ratio of 3: 2, while having a housing size that is almost the same as a 13.3-inch notebook PC. The large screen, compact design, and 999g weight reduction make it easy to carry, and the AI ​​noise reduction function compatible with Intel GNA reduces noise such as typing noise and sudden sirens heard from the outside. The sound effect software "Waves MaxxAudio" and a box-type speaker with high sound pressure are used to realize a comfortable web conferencing environment. It is a mobile notebook developed with the aim of supporting diversifying work styles in New Normal. "In Japan, working in both an office and a remote environment is often regarded as hybrid work, but hybrid has the meaning of creating new value by crossing different things. 1 The original idea of ​​hybrid work is to realize an environment where you can work in two spaces, and the FV series was developed for that purpose. Let's Note always listens to the voices of customers and listens to them. The FV series is designed with the customer's usage scene in mind. The FV series has achieved the optimum screen size, sound quality, weight, etc. for hybrid work that allows you to work in one environment wherever you are. " One of the features of the FV series is the 3: 2 angle of view. Compared to 16: 9 and 16:10 displays, the vertical direction is longer and the display area is wider. It is also effective for displaying the taskbar when using the application and browsing the Web, and it can display a lot of information even when using Excel etc., and it is said that it is highly evaluated when used for business purposes. The concept is also gaining popularity as a PC used by university students who require distance learning, and "there are more inquiries from universities here." ■ Is it a full-scale entry into the 14-inch or larger market? Let'snote has a history of success with mobile notebooks equipped with a 12-inch LCD display. Currently, the main products are the SV series equipped with a 12.1-inch liquid crystal display and the QV series of 2in1 notebook PCs equipped with a 12.1-inch liquid crystal display. On the other hand, there was a history of developing the LX series and LV series as models equipped with a 14-inch LCD display, but while the 12-inch class was the leading role of Let'snote, the impression of a supporting role. I couldn't deny it. "Even by ourselves, there was a part that we had decided in the frame that Let'snote is 12 type. However, due to the size of the response of the FV series, Let'snote can show its presence even in the area of ​​14 type. In the background of this, we cannot overlook the evolution of various technologies. The narrow frame makes it possible to make it compact and weigh less than 1 kg. It is said that there are more new markets where we can propose the strengths of Let'snote. It can be said. The 14-inch notebook PC market is more competitive than the 12-inch notebook PC market, but Let'snote has finally gained a response to make a full-scale entry into it. " Let'snote has been useful to business travelers who travel a lot, as it is said that they have a high share of the Shinkansen. Many media outlets use Let'snote because it is hard to break and is evaluated as a PC that can write manuscripts anywhere. This is because Let'snote balances the elements of "lightweight", "long time", "ruggedness (tough)" and "high performance" at a high level, creating a product with the optimum requirements for mobile notebooks. The reason is that. However, in Korona-ka, in addition to the market such as mobile notebook, a new element called hybrid work has been added, and there are some parts that cannot be covered by the main SV series alone for that market. The FV series was introduced to the market to cover this. It can be said that it is a product that has set a new step in the field of PCs for hybrid work while making good use of technological evolution. And this evolution is likely to continue. Vice President Sakamoto said, "For example, in the future, we would like to actively develop for larger screen needs such as 15-inch and 16-inch. In addition, high brightness that is easy to see even in sunlight, which is well-established in toughbooks. We are also considering installing a low-reflection liquid crystal display on Let'snote. It will be possible to support a hybrid work environment such as an outdoor site. " By forming a new market called hybrid work and technological evolution such as reducing the weight of the panel, it is possible to install a liquid crystal display that could not be installed in the conventional Let'snote, realizing the hybrid work that Let'snote aims for. It will be further evolved. This is synonymous with more markets where Let'snote can compete. For Let'snote, it will be interesting to see if another pillar of business will be born. By the way, in the future, PCs used within the Panasonic Group will also actively introduce the FV series equipped with Windows 11. ■ Utilizing software to improve quality On the other hand, as the usage scenes are diverse, the robustness and usability of hardware are also required to be further improved. Vice President Sakamoto said, "For the past few years, we have been focusing on sharp manufacturing by thoroughly polishing the hardware with a stance of returning to the origin." Of course, we are also eager to enhance our products with software such as "Work Compass," "TRUST WIPE," and "Panasonic PC Comfortable NAVI." However, when it comes to enhancing software, it has also focused on utilizing it from the perspective of enhancing the quality of hardware. For example, Let's Note collects data such as battery and SSD status and analyzes them with the approval of the user. In fact, recently, a situation has occurred in which the battery is extremely consumed even though it has not been used for a year. At that time, in the past, it took time to identify the cause because the actual machine was obtained and analysis was started from there, and it sometimes took two months to respond. However, by using the new mechanism, it is possible to analyze based on the log, it is possible to identify the cause in a short period of time, and it took only one week from analysis to resolution by updating with firmware. "It is important to improve quality and minimize the impact even if a defect occurs, which leads to an increase in customer value. This is what we do all domestic development, production and support. That's what makes it possible. " ■ Strong demand for toughbooks at home and abroad On the other hand, what about the movement of toughbooks? Currently, the biggest problem with toughbooks is that the shortage of parts has had a major impact and the production volume has not reached the planned level. Vice President Sakamoto reveals that he is being forced to coordinate with domestic and overseas suppliers, saying, "On average, we hold meetings with one supplier every day regarding parts procurement." "Demand for toughbooks is strong. In the United States, police and other public sector applications continue to be strong. In Europe, we have shifted from an enterprise-centric strategy and based on successful cases in the United States. We are accelerating proposals for devices to be mounted on police vehicles, ambulances, and fire engines, which has led to results. We have transferred employees with a proven track record in the United States to take charge of Europe, and based on that know-how, Germany and the United Kingdom. , France, Belgium, the Netherlands and Luxembourg, with a standardized global approach. " Also in Japan, it is said that it has won large-scale introduction projects in the police and logistics industries. As a device for realizing the "field process innovation" that Panasonic Connected Solutions Co., Ltd. advocates, it is increasing its presence in specific markets. "The needs for on-site use of toughbooks are increasing in line with the spread of DX in Europe and the United States. Various demands are being created, and we want to make sure to capture them." In the Mobile Solutions Division, which Vice President Sakamoto is in charge of, payment terminals installed in retail stores are also a business area. However, it is said that there are remarkable movements such as postponement of installation schedules at retail stores and restaurants. Panasonic has introduced strategic products such as an all-in-one multifunctional payment terminal compatible with Sumitomo Mitsui Card's new payment platform "stera", but the number of restaurants and restaurants in Korona-ka has decreased and the number of new stores has decreased. It is said that the situation will be severe in 2021 due to the increase in store closures. "Payment terminals have delays in business negotiations, but it's finally time to start moving. Again, we're doing business well," he said. ■ Strengthening the Kobe Factory by Utilizing Blue Yonder Another initiative that cannot be overlooked in Panasonic's PC business is the efforts to transform manufacturing at the Kobe Factory, which produces all of Let'snote. Compared to FY2017, we have already achieved a 10% reduction in parts inventory, and other results have been produced in various ways. Vice President Sakamoto said, "We are taking on the challenge of manufacturing that cannot be imitated anywhere. Standardization, simplification, By further advancing automation, we are aiming for a faster and stronger Kobe factory. " One of those efforts is to narrow down SKUs. Until now, it was a feature of Let'snote and Toughbook that various customizations were possible, but we started to review SKUs in response to changes in the market environment. It has already shrunk to one-fifth compared to about five years ago. "By reducing SKUs, we can narrow down the types of parts and create advantages in terms of procurement. Not only can we improve parts inventory, but we can also improve production and delivery, increase the number of products that can be delivered immediately, and make it easier for customers to purchase. "It will be", showing the aim. Toughbooks were a factor in the expansion of SKUs. In fact, toughbooks account for about 90% of this SKU review. The background to the expansion of SKUs was that SKUs inevitably increased due to the occurrence of specifications and customizations that corresponded to the needs of each country in order to expand in countries around the world. In addition, Vice President Sakamoto said, "We will halve the SKUs that have been reduced to one-fifth," and this initiative is likely to be in production in the future. There is another reason for narrowing down SKUs. This is because the supply chain software "Blue Yonder" acquired by Panasonic is being introduced to the Kobe factory by itself to evolve S & OP (Sales and Operations Planning). "If you want to achieve results with S & OP by Blue Yonder, you must first narrow down the part number (SKU). With Blue Yonder, you can perform lean operations, which will lead to design enhancement, inventory reduction, and shortening of delivery. I can do it. " The Kobe plant has reduced parts inventory by 10% in about five years, but it is aiming to further reduce inventory by 10% by utilizing Blue Yonder. "It is possible not only to reduce inventory, but also to change the contents of inventory. For example, by reducing SKU, it increases due to parts that were ordered more than before delivery time and MOQ (minimum consumption order quantity). It will be possible to improve the parts inventory that was being done, and the waste loss will be reduced. We would like to work on reducing unnecessary parts and increasing the number of parts that lead to safety stock. " Panasonic is a strict inventory management company. Under the influence of the Korona-ka, Panasonic reviewed its inventory policy for the entire group and was able to hold two months' worth of inventory for key components. In Korona-ka, lockdown caused the production of major parts to stop, and there were many situations in which products could not be made because they were not available. By having two months of inventory, you can wait for countermeasures such as replacements and design changes, and restart of the factory during that time, and the impact can be minimized. Even in such cases, reducing the number of parts in stock based on the reduction of SKUs will have a great effect. Furthermore, at the Kobe Factory, we will carry out activities such as incorporating the know-how of the Panasonic Saga Factory, which is leading the way in logistics and inventory management renewal using Zetez, which was also acquired by Panasonic, and improving work efficiency of production lines, by the end of FY2022. The idea is to further improve operational efficiency. "The introduction of Blue Yonder has the effect of changing the mindset of employees before direct results are produced, and these efforts have the effect of reducing inventories. In the fall of 2022, the concrete results of Blue Yonder will be realized. , Can be shown as an ability value. " Originally, the Kobe Factory was open to companies, major retailers, students, etc. who are considering the collective introduction of Let's Note and Toughbook, so that they can understand the high quality and reliability of manufacturing, and feel at ease. It has been used as a place to give a feeling and lead to a purchase decision. There is also the name "Kobe factory where you can get an order form" in the company. While continuing that role, he also plans to use it as a showcase for Blue Yonder. It will also serve as an experimental site for the realization of the autonomous supply chain that Blue Yonder is aiming for in the medium to long term. ■ Do not pass on prices to Let'snote What is worrisome is the passing on to product prices due to soaring material prices. Panasonic has already been working on price revisions from the first half of 2021 at Industry, which handles electronic components and control devices, and as a result, the impact of soaring component prices will be almost eliminated in the fourth quarter. In addition, the prices of overseas home appliances for the Chinese market have already risen, and from April 2022 onward, the impact of soaring material prices will be passed on to product prices for domestic home appliances as well. There is. Hirokazu Umeda, Director, Senior Managing Executive Officer and Group CFO of Panasonic, said, "Copper and iron remain high. We expected an annual impact of 100 billion yen, but the impact is larger than expected, and the annual impact is greater. We expect that there will be an impact of 130 billion yen, "he said, indicating that the impact of soaring material prices is worsening. As a matter of course, it is expected that prices will be passed on to Let's Note and Toughbook, but Vice President Sakamoto said, "Prices are starting to be passed on to PCs of other companies, but at the moment, prices in Let's Note and Toughbook are being passed on. We are not considering a review. We would like to absorb as much as possible. If the impact of the shortage of parts expands and the procurement of parts from the general secondary market increases, the impact on the procurement price will increase, and we will consider passing on the price. I have no choice but to think that it will not be there yet. " It can be said that the effects of reducing SKUs, reducing the number of procured parts, and reducing inventories centered on the reform of the Kobe factory have a positive effect on the issue of rising parts prices. ■ What is the impact on becoming a business company? In April 2022, Panasonic will shift to a holding company system, and Panasonic Connected Solutions Co., Ltd. will become Panasonic Connect Co., Ltd. "Become a business company, clarify the business domain, and enable more focused management. With Blue Yonder at the core, it will be reborn as a business company that gathers business entities that can earn profits with hardware. It is also good for the PC business. It will take shape. " Yasuyuki Higuchi, president of Panasonic Connected Solutions Co., Ltd., said, "With the establishment of Panasonic Connect, it is time to take off the'Fastball Training Cast'. In response to this, Vice President Sakamoto says, "I want to create exciting products with various changing balls (disappearing magic balls) as well as fastballs." ■ Promoting Growth Strategy in 2022 What about the PC business at Panasonic Connect, which will start in April 2022? According to Vice President Sakamoto, it is likely that the company will maintain its strong momentum from January 2022 and formulate a plan to exceed the previous year's results in 2022. "In the domestic PC market as a whole, 2022 is expected to be the toughest year, but Panasonic Connect's PC business will turn to a growth path in 2022. We plan to exceed 5 to 10%." do. Concerns include a shortage of parts, which is expected to continue for the entire 2022, and a round of demand for nesting, but Vice President Sakamoto said, "Demand for hybrid work is strong, and let's note and toughbook pipes at this point. The line is strong and it is expected to continue, Let'snote has begun to prepare an environment to compete in a new market of 14 type or more, it is possible to propose + α to the lineup so far, and the SKU has been reduced. There are factors such as responding to the supply chain. As the keywords of hybrid work expand, the demand for Let'snote will increase accordingly. " The mission of the Mobile Solutions Division is to "realize a society where mobile workers can work vigorously." "According to the results of market research, it is possible to work anywhere, but there are many people who are not excited because there is no optimal device for it. I would like to support the creation of an environment where I can work with excitement. Let's note wants to contribute to that. " Panasonic has announced plans to ship 1 million units a year in 2025. 2025 is a year in which replacement demand is expected due to the end of support for Windows 10. FY2022 will be an important year as a year of approaching to 1 million units a year and as a year of ground preparation. The key is to be able to connect the response to the new market of hybrid work obtained from the FV series equipped with a 14-inch LCD display to the next step of Let'snote.

PC Watch, Katsuyuki Okawara