Sign of the Times
Sign of the Times

Sign of the Times

Casio Bullish on Overseas Handset Sales

Casio expects a 10 billion yen ($86 million) investment in new mobile phone models to return a profit in the first year, helped by sales of handsets equipped with its Exilim camera and G-Shock watch technologies. The handsets, based on the W-CDMA standard, will be sold at a higher profit margin than earlier models, said Tateki Ohishi, chief executive officer of Casio Hitachi Mobile Communications Co., the Tokyo-based company’s venture with Hitachi Ltd. Full Story Here.

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.

Sanyo Sells Handset Retail Division

According to this report on WSJ Sanyo said it would sell their retail sales division to Telepark for 4.8 billion yen ($41.6 million). Sanyo had been reluctant to sell off businesses but Goldman Sachs and other investors that last year funded a 300 billion yen bailout have put on the pressure, resulting in management changes and a new strategy. This exit decision was revealed in July however the closing price is well below previous estimates.

Kyocera to Acquire Sanyo Mobile Unit

According to the Nikkei, via Reuters, Kyocera and Sanyo are close to inking a deal that would merge the device makers into the world’s seventh largest mobile phone manufacturer. The business daily stated Kyocera aims to buy Sanyo’s mobile phone operations for about 50 billion yen ($435 million), Sanyo expects to sell about 11 million units in the current business year to March 2008, down from its initial estimates of 12.5-12.6 million. Both Kyocera and Sanyo said in separate statements that nothing has been decided.

Hideki Komiyama to Lead SonyEricsson

SonyEricsson appointed Hideki Komiyama its new top executive as Miles Flint has decided to step down from the post. Flint, who became president in 2004 and guided the venture to profitability, will remain executive adviser to Komiyama until the end of the year. Komiyama, currently chairman of Sony Electronics, will move into the new job on Nov. 1.

Fujitsu to Spin Off Two Divisions

Fujitsu announced it has decided to spin off its shared technology and design divisions and convert them, as of October 1, 2007, into two newly established corporations, Fujitsu Advanced Technologies Limited and Fujitsu Design Limited. Fujitsu is making its broad operational expertise and experience available to customers through the provision of business process outsourcing (BPO) services. Now, in conjunction with this approach, Fujitsu is separating into independent subsidiaries its shared technology and design divisions.

Sanyo to Exit Cell Phone Business?

Sanyo has decided to sell its mobile phone business as part of its effort to improve group-wide profitability, with an agreement expected by the end of the year, according to a web report on Saturday by public broadcaster NHK. Sanyo is said to be negotiating separately with Sharp and Kyocera according to this article on The Japan Times. The exit rumor surfaced late last year.

Dowa to Recycle Mobile Phones

Dowa-Eco is planning to import used mobile phones from Southeast Asia to extract nonferrous metals such as gold and copper from them for recycling, according to the Daily Yomiuri. The Dowa group has the only smelter in Asia capable of extracting individual metals from ores such as copper, gold and lead which are needed for making substrates used in mobile phones.

NEC Profit Triples on Mobile Business

AP is reporting, via Yahoo, that NEC Corp. said Tuesday its profit in the April-June period more than tripled, helped by turnaround efforts in its overseas mobile phone operations. Profit at the Tokyo-based electronics manufacturer totalled 973 million yen (US$8.2 million) for the three months ended June 30, up dramatically from 261 million yen the same period the previous year.