Sign of the Times
Sign of the Times

Sign of the Times

Cellphone Makers Restructuring

Digital deflation, the market aberration that sees prices fall as fast as products improve, is hitting no industry harder than cell-phone hardware. Handset makers are restructuring, but the problems may be bigger than any single company can handle. In a recent interview, NEC President Akinobu Kanasugi said the company aims to decide by June on a drastic restructuring measure, such as operational alliance and integration with a rival. “If we fail to recover profitability (this year), we will be punished by the stock market,” he said.

Challenge Facing Foreign Handsets

At the end of last year, a group of procurement officials from NTT DoCoMo visited China to inspect Nokia’s mobile phone plant. The visit, ahead of the launch in February of the Finnish group’s handsets bearing the DoCoMo logo, was designed to reassure the Japanese carrier that Nokia’s facilities were up to its demanding standards. DoCoMo cancelled its initial contract and scaled back its procurement from Nokia when the launch was delayed due to the difficulty of installing i-mode, according to one official.

Wireless Watch Japan – Top Stories for 2005

Wireless Watch Japan - Top Stories for 2005We published 596 articles on Wireless Watch Japan in 2005 and thought you might enjoy looking back at the most popular Japan mobile industry highlights from the year. The links below, three from each month, represent the two top stories (by volume of visitor requests) and a third which we consider a significant development in that 30-day period.

It’s been a year of explosive year in the mobile world and 2006 is set to be even much more interesting with faster mobile networks, more powerful handsets and compelling contents settling into the mainstream. Here in Japan, we are expecting a dramatic increase in m-commerce adoption, driven in part by Mobile Suica’s launch, set for later in January and the start of ‘One-Seg’ digital TV broadcasting starting — on all three carriers — on 1 April (no joke). We also see a potential increase in churn as a result of the (belated) introduction of number portability and with three new carriers entering the market, even DoCoMo is concerned.

One of the more obvious action areas in 2006 will be the increase of M&A activity at all levels; in particular, look for consolidation in the Japanese handset market. Meanwhile, lets boldly predict that we’ll have at least a few 3.5G (HSDPA) phones on the streets of Tokyo by this time next year. Interesting times ahead, indeed. Get all the skinny after the jump!

NEC Considers Handset Merger

NEC Corp. is hoping to tie or merge its cell phone business with that of another Japanese handset maker within the next 6 months, its president said in an interview published Tuesday in a Japanese newspaper. President Akinobu Kanasugi told the Asahi Shimbun newspaper that he wants to find a domestic partner for his company’s cell phone business. He has ruled out working with a foreign cell phone maker because NEC has a large amount of 3G-related technology and know-how that was gained with NTT DoCoMo and other domestic partners, he said.

NTT, Sega Testing 3D Technology

NTT and Sega Ltd. have started a joint experiment that utilizes object recognition technology developed by NTT Laboratory; the technology gives hyperlink functionality to patterns (trademarks, signboards, posters, etc.) as well as to solid things (commodities, etc.) that exist in the real world, and enables combination with various services on the Internet. The technology utilized in this experiment was developed by the NTT Cyber Communications Laboratory. NTT will conduct a verification of business applications through this joint experiment, while Sega will examine the development of new contents that use the technology.

Casio G'zOne Launched in Korea

LG Telecom, Korea’s smallest mobile operator, took the wraps off that nation’s first waterproof mobile phone, the canU 502S [.jpg], developed under alliance with Japanese firm Casio Computer. Launched in Japan in May 2005, the G’zOne is a rugged, water-and-shock resistant handset based on the company’s popular G-Shock wristwatch series. The unit has four styles of digital time keeping and a sub-display screen that functions as an electronic compass. The Korean version also comes with an MP3 player and a mega-pixel camera and has a price tag of 550,000 won.

Gartner Sees $$$ in RFID

RFID technology’s time may finally be coming if implementers can learn to look beyond its current characterization as a product ID-code system, according to a new Gartner report. Findings from “Market Share and Forecast: Radio Frequency Identification, Worldwide, 2004-2010”. According to the report, worldwide RFID spending for 2005 is likely to reach $504 million, a 39 percent increase from the previous year. Accelerating adoption will lead to new license revenue of $751 million by the end of 2006, with worldwide spending topping $3 billion by 2010.

DoCoMo to Invest in Korea's KTF?

NTT DoCoMo Inc. is in final talks to buy a 10 percent stake in South Korea’s KTF Co. Ltd. for as much as $500 million as Japan’s top mobile carrier seeks new avenues of growth, industry sources said on Tuesday. The deal between DoCoMo and South Korea’s second-ranked mobile operator could be announced as early as this week, the sources told Reuters.

Panasonic Mobile to Restructure

Japan’s Matsushita Electric will end production of current generation mobile phones for overseas markets, cut more than 1,000 related jobs and focus on developing 3G phones, company sources said. The world’s top electronics maker, known for its Panasonic brand, will close a factory in the Philippines and a development facility in the United States as part of its plan to refocus its resources on phones for next-generation networks, they said. Matsushita said it planned to hold a news conference today in Tokyo. Yoshiaki Kushiki, president of Panasonic Mobile Communications, will attend.

Gadgets, Guards Ensure Kids are Safe

Shock at the brutal murders of two 7-year-old girls in the space of just over a week is pushing Japan to consider everything from bus services to high-tech gadgets to keep small children safe between home and school. High-tech gadgets are an increasingly common way of trying to protect kids unobtrusively. Concerned parents often provide their offspring with mobile phones that incorporate global positioning systems (GPS) for tracking their movements.