Japan has long been known as the land where advanced mobile phones pack features that would have the average American dizzy with wonderment. Japanese handset makers have been concentrating on stuffing as much techno-gadgetry in to their dumb-phones in an attempt to woo as many Japanese tech-heads as possible.
But, there’s a problem. Japan has seen handset sales plummet 20% as the island-nation’s largest wireless carrier, NTT DoCoMo, pulls back on handset subsidies. NTT DoCoMo reported a 41% increase in mobile phone profits, which is directly tied to their decision to charge more per handset. So, it’s not all bad news.
But, the Japanese handset market’s reduced consumption of new cellphones could point to an even more pressing issue – feature-phones packed to the gills with, well, features, have become saturated in Japan.
As smaller handset makers dumped R&D resources in to developed the latest and greatest feature phones to attract customers, the market has become so saturated with cellphone choices that Japanese population has been spread thin. So thin, in fact, that few handset manufacturers have been able to capture enough of the Japanese market-base to recoup their R&D costs.
We’re likely to see a significant shake-up in the Japanese handset market. Smaller handset makers may need to combine operations in order to stay alive in an increasingly more competitive market. And, with Samsung and Apple breaking in to the game, Japanese companies are going to be hard pressed to turn a profit.
[Via: MocoNews]