Japan Telecom Hardware Sales Drop

The CIAJ has released the telecom equipment figures for Q1 fiscal 2007 (April – June) that show negative performance continues in the mobile terminal category, which accounts for approx. 70% of the market. Handset sales account for approximately 67% of the market and therefore has a large impact on overall production figures. The 2007 results show a significant drop from the 2006 figure, but is similar to the performance in 2005.The total number of subscribers continues to increase, indicating that the trend among carriers to purchase high-end products by domestic brands and import low-end modestly priced products from abroad continues.

The total value of domestic production for the first quarter of FY2007 was 576.4 billion yen (a negative growth of 14.0% over the same quarter of the previous year), recording the fourth consecutive negative quarterly growth rate over the same quarter of the previous year. With the exception of fixed telecommunications equipment and parts & components, all equipment categories showed negative growth. The full report is available in English Here.

Actual figures by equipment category — compared to same quarter of the previous year

++ Mobile terminal equipment 403.6 billion yen — negative growth of 14.2%
Cellular handsets 384.0 billion yen — negative growth of 15.0%
Public-use PHS 6.3 billion yen — negative growth of 30.1%

++ Wireline network equipment 84.5 billion yen — negative growth of 18.7%
Switching systems 30.7 billion yen — negative growth of 21.5%
Transmission equipment 53.7 billion yen — negative growth of 17.0%

++ Wireless network equipment 43.8 billion yen — negative growth of 5.6%
Fixed telecommunication equipment 26.8 billion yen — positive growth of 13.3%
Base station communication equipment 17.0 billion yen — negative growth of 25.3%

++ Wireline terminal equipment 33.3 billion yen — negative growth of 12.8%
Key telephones 23.5 billion yen — negative growth of 6.5%, of which intercoms amounted to 11.8 billion yen — negative growth of 2.6%
Facsimile equipment 6.5 billion yen — negative growth of 31.1%

++ Network access equipment 6.5 billion yen — negative growth of 1.1%
Routers and hubs 5.7 billion yen — negative growth of 1.4%

++ Wireline parts 4.8 billion yen — positive growth of 5.6%