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When do low prices on mobile phones and service actually hurt consumers? Well, for Japan, the continuing decline of mobile phone prices is putting the hurt on the island-nation’s economy. With 100 million mobile phone users, Japan’s top mobile phone manufacturers and carriers are engaged in a months-long battle to entice wireless customers into their side of the ring. The biggest weapon is the slashing of the price of hardware and service.
The price-war has had a negative effect on Japan’s economy – namely on the Consumer Price Index (CPI). The country has been struggling to escape deflation’s strangle-hold for the past several months. And it looks like Japan is going to have to deal with another month of deflation and falling prices/CPI.
The Ministry of International Affairs and Communications, which compiles the CPI, has yet to decide how to deal with the expected 30% price cuts from the nation’s top two mobile phone providers – KDDI and NTT DoCoMo.
It seems too much of a good thing really can be bad.
[Via: Yahoo]
About The Author
Will Park
Will hails from The City of Angels - Los Angeles, California. He spends his time playing with his numerous gadgets and looking forward to seeing what future holds for mobile technology. An avid promoter of a fully "digital" life, he promotes the widespread adoption of truly mobile, paper-less living. He dreams of the day when he can go completely digital. No more snail mail, paper receipts, bound books, notepads/spiral notebooks, credit cards, hard currency. He's a digital warrior - fighting for the converged life. He is an idealist and a realist - he has a perfect view of what the world should be but knows that the world is not perfect. Can we ever hope to see Will's dream become reality? We'll see...
