Japan’s domestic shipments of cell phones posted year-on-year growth for the second straight month in December, an industry body said on Thursday, as new-model camera phones breathed life into a saturating market. .
Berman warns, however, that with a typical handset cost of 37,000 yen in the latest quarter, “it will require about 23 months to cover [the] cost for upgrade customers.” He goes on to state that this creates a difficult situation for KDDI, wherein there’s lots of room for concern for the cost of the 2G-to-3G upgrade cycle. Remember, too, that KDDI has committed to launching a 1X EV-DO upgrade in late 2003. Will it have to commit to another two-year cycle to convert subscribers to the new system? If so, the expense half of their balance sheet may get a little out of control no matter how strong the revenue side remains.
Wherein WWJ staff line up a sexy, passion-red, brand-spanking new J-T08 from Toshiba- with a stunning LCD display – against a dowdy, dull-silver, two-year-old Panasonic P209iS in the handset grudge match of the year! We also toss a Sharp SH-52 camera phone into the ring… Japan’s pocket rockets have come a long way, baby, and it’s tough to beat the Tosh’s sleek lines, world-beating LCD screen, and silky smooth sound. Like their automaker brethren of a generation ago, does this lop-sided fight mean that Japan’s handset makers have mastered the art of ‘continuous improvement?’ We think so – and this program shows you why.
“Camera phone penetration is increasing. With the newest handsets – particularly in DoCoMo’s case – the packet downloads have just surged. So you’ve got much higher packet usage – two to three times higher now on the camera phones,” says CSFB sr. telecoms analyst Mark Berman. Watch our 2003 kick-off program as we pick the brain of one of Tokyo’s most respected industry watchers on what to expect in ’03. DoCoMo, KDDI, J-Phone, ARPU, data trends, and multimedia: these are a few of our favorite things!
Keisuke-san says his 2-1/2-year-old daughter is already interested in communicating visually on both mobile phone and on the set-top video system that he has in his SOHO office. “She sometimes says to me,’Dad, let’s do videoconferencing.’ I do not think that she understands the literal meaning of the words but she is kind of getting used to stand or sit in front of a monitor that shows a person talking on the other end of a live video call. She looks [like she’s] just enjoying it.”
Overall, I’m underwhelmed. Handset quality and clunkiness versus feature mix are widely considered to be major factors in the fizzling of FOMA to date. I think J-Phone will have to market like heck to convince people these are any better than current (great-quality) 2G models, and if DoCoMo launches better 3G models (as they are expected to do very soon), J-Phone could be in trouble.
