Key points for the different phases are given here.
Phase 1 in the office services field involves the hybrid-type value-added sales. This will be accomplished. Unit sales declined in the second quarter, and this had an effect, as noted earlier. Direct sales in the United States, however, are bringing increased gross profit, and there is no mistake in the direction taken to generate profit. The present price competition does not look reasonable from the industry perspective. For example, while the US dollar has gone from ¥100 to ¥120, since the products are being made in countries other than Japan they are not influenced by the Japanese yen. As shifting the exchange rate advantage onto price throws things off at the consolidated level, Konica Minolta will not go along with price competition. In order to provide a bridge for this industry to cross over into the next era, we will continue unchanged with the policy of increasing hybrid-type sales agreements so that customers will recognize the added value we provide.
On entering Phase 2, the present MFP will become a more evolved, new model platform. In other words, it will be an era of IoT services, which means incorporating new ICT technology into business models. On this, Konica Minolta's basic policy of building capabilities in order to TRANSFORM ahead of the competition will continue unchanged.
In the commercial and industrial printing field, the current high-end products are being well received. Ink-jet printers are moving on from displays of technology to the business stage in the second half. The partnership with MGI Digital Graphic Technology is also moving forward. This is an area that has potential for us, and it is also an area with actual capabilities.
Phase 1 in the office services field involves the hybrid-type value-added sales. This will be accomplished. Unit sales declined in the second quarter, and this had an effect, as noted earlier. Direct sales in the United States, however, are bringing increased gross profit, and there is no mistake in the direction taken to generate profit. The present price competition does not look reasonable from the industry perspective. For example, while the US dollar has gone from ¥100 to ¥120, since the products are being made in countries other than Japan they are not influenced by the Japanese yen. As shifting the exchange rate advantage onto price throws things off at the consolidated level, Konica Minolta will not go along with price competition. In order to provide a bridge for this industry to cross over into the next era, we will continue unchanged with the policy of increasing hybrid-type sales agreements so that customers will recognize the added value we provide.
On entering Phase 2, the present MFP will become a more evolved, new model platform. In other words, it will be an era of IoT services, which means incorporating new ICT technology into business models. On this, Konica Minolta's basic policy of building capabilities in order to TRANSFORM ahead of the competition will continue unchanged.
In the commercial and industrial printing field, the current high-end products are being well received. Ink-jet printers are moving on from displays of technology to the business stage in the second half. The partnership with MGI Digital Graphic Technology is also moving forward. This is an area that has potential for us, and it is also an area with actual capabilities.