Wacom

Basic Information

Stock Code
6727
Industry
Electrical Equipment
Category Detail
Information & Communication Equipment
Prefecture
Saitama Prefecture
Establishment Year
July 1983
Listing Year
April 2003
Official Website
https://www.wacom.com/ja-jp
TSE Information
TSE Information
Yahoo! Finance
Yahoo! Finance
Other Companies
Tokyo Enesis, Shoko Denki, MCJ, Buffalo, EIZO, Elecom, Teito Kogyo

Overview

Wacom is a company founded in 1983 in the electrical equipment industry, boasting the world's top market share in the pen tablet sector, supported by its own brand products and OEM technology supply as key pillars with high technological capabilities.

Current Situation

In 2023, Wacom's business structure shifted, with its brand products business holding a 97.4% domestic market share, though declining sales in mid- to low-priced products pose challenges. The technology solutions business is growing and supporting overall performance, while the OEM business remains the main supplier of pen technology for smartphones and tablets. For FY2021, consolidated sales were approximately 108.5 billion yen, with operating profit at about 13.4 billion yen, securing stable earnings. In technological innovation, it is refreshing its market portfolio through advanced pressure sensitivity detection and new flagship product launches. It is also actively expanding globally through overseas subsidiaries, such as partnering with illustration software company Celsys in 2022 to pursue multifaceted growth strategies. Despite a post-COVID slump from stay-at-home demand, medium- to long-term expectations are high for further expansion in the technology solutions business. Aiming for sustainable growth, it continues product innovation and adaptation to market needs while targeting both professional and general users.

Trivia

Interesting Facts

  • Developer of the world's first cordless and battery-free pen tablet.
  • 97.4% market share in Japan's domestic pen tablet market.
  • Technology used in Disney's 'Beauty and the Beast' production.
  • Company name is a coined term from 'world' and 'computer'.
  • Offers a variety of electronic signature terminals for business and education.

Hidden Connections

  • Pen technology adopted in Samsung's Galaxy Note series.
  • Strategic partnership with Japan's major illustration software developer Celsys.
  • Unique industry history stemming from founders linked to Unification Church-related companies.
  • Adopted Pilot's Dr. Grip shape for its pens.

Future Outlook

Growth Drivers

  • Increasing stylus demand in smartphone and tablet markets.
  • Expansion of high-value-added products for professional creators.
  • Growing opportunities from digitalization in education.
  • Expansion of pen technology applications in IoT, AR/VR fields.
  • Strengthened global expansion and emerging market development.
  • New product development through integration with AI technology.

Strategic Goals

  • Maintain and expand market share in brand products business.
  • Achieve over 60% sales composition ratio in Technology Solutions Business.
  • Promote product development aiming for zero environmental impact.
  • Achieve over 70% global sales ratio.
  • Realize over 50% ratio of sustainability-certified products.
  • Continuously acquire and utilize new technologies and patents.

Business Segments

Technology Solutions Business

Overview
Provides pen technology and related solutions for smartphones and PCs as an OEM business.
Competitiveness
Advanced pressure sensitivity technology and extensive OEM track record
Customers
  • Smartphone manufacturers
  • Tablet manufacturers
  • PC manufacturers
  • Electronic device OEM companies
  • Automotive equipment manufacturers
Products
  • Pen sensor systems
  • Touch sensor technology
  • Stylus IC chips
  • Dedicated drivers
  • Development support services

Business, Healthcare, and Education Products

Overview
Generates stable revenue through dedicated devices and solutions for non-consumer markets.
Competitiveness
High reliability and adaptability to diverse industry needs
Customers
  • Medical institutions
  • Educational institutions
  • Financial institutions
  • Government agencies
  • System integrators
Products
  • Electronic signature tablets
  • Medical input devices
  • Educational tablets
  • Business LCD pen tablets
  • Dedicated software

Technology Licensing and Patents Business

Overview
Maintains competitive edge in the industry through patent management and technology provision.
Competitiveness
Competitive defense through robust patent portfolio
Customers
  • Digitizer manufacturers
  • Touch technology vendors
  • IT-related companies
Products
  • Patent licensing
  • Technology consulting
  • Standards compliance support

Competitive Advantage

Strengths

  • World-leading pen tablet technology
  • Dual pillars of own-brand products and OEM
  • Advanced patents in pressure sensitivity detection
  • Global expansion via numerous overseas subsidiaries
  • Pioneer in high-definition LCD tablets
  • Strong customer base and brand recognition
  • Versatility for diverse industries
  • Stable financial foundation
  • Aggressive R&D investment
  • Strategic partnerships with software companies

Competitive Advantages

  • Exclusive position in electromagnetic induction technology honed over years
  • High-quality, high-precision product lineup
  • Over 97% domestic market share as industry leader
  • OEM supply track record to major manufacturers like Samsung
  • User-friendly product design and support system
  • Competitor suppression possible via patent strategy
  • Expanding applications across multiple industries
  • Strong brand power supporting customer acquisition
  • Portfolio refresh to meet customer needs
  • Sustainable product development with environmental considerations

Threats

  • Spread of low-price models by competitors
  • Rise of alternative technologies like Apple Pencil
  • Intensifying competition in mid- to low-priced products
  • Risk of demand decline post-COVID
  • Supply constraints from semiconductor shortages
  • Business impact from US-China trade friction
  • Burden of responding to rapid technological innovation
  • Profit pressure from industry price competition
  • Increased difficulty in responding to diversifying market needs
  • Profit squeeze from rising component procurement costs

Innovations

2022: Announces new flagship LCD tablet 'Cintiq Pro 27'

Overview
Renews product lineup with industry-leading pressure sensitivity model.
Impact
Strengthens competitiveness in professional user market.

2021: Becomes top shareholder of Celsys through partnership

Overview
Strengthens collaboration with major domestic illustration software company.
Impact
Promotes synergy expansion with brand products.

2020: Develops high-resolution pressure-sensitive pen technology 'Pro Pen 3'

Overview
Introduces high-performance pen achieving 8192 levels of pressure sensitivity.
Impact
Improves user satisfaction in professional market.

2023: Expands low-cost models for LCD pen tablets to counter price competition

Overview
Deploys product lineup with maintained performance but reduced costs.
Impact
Has some effect in curbing customer outflow to competitors.

2024: Expands OEM technology in Technology Solutions Business

Overview
Increasing new adoptions of digital pen technology for smartphones.
Impact
Contributes to revenue diversification and stabilization.

Sustainability

  • Efforts to reduce environmental impact of product materials
  • Implementation of recycling promotion and waste reduction programs
  • Promotion of energy-saving in production processes
  • Environmental protection activities in collaboration with local communities
  • Advancement of employee environmental awareness education
  • Expansion of sustainable material adoption