sony-ericsson
sony-ericsson

sony-ericsson

Analysis: Japan's Megapixel Phones Eye Digital Cameras' Turf

Japan’s cell phone makers, pioneers of the camera-equipped handset, look set to intrude into digital camera makers’ turf as a fierce battle for market share draws them toward photo-phones with million-pixel resolution. No one is yet consigning digital cameras to the high-tech scrap heap, but some of the dozen or so handset makers that crowd the Japanese market are preparing to launch “megapixel” photo phones this year with picture quality good enough to make prints.

Tectonic Change in Japan's Mobile Handset Market

The past few days have seen Japan’s big electronic makers releasing their quarterly and semiannual results, and the news from Sony, NEC, Fujitsu, and others has been mostly bad where cell phones are concerned. There have also been a lot of media reports on Japan’s ailing phone tanmatsu (terminal) market, and it appears that majors changes are underway. First, the media reports. On October 10 JEITA announced that domestic shipments of cellular phones fell 18.3 percent in August 2002 from a year earlier to 3.26 million units. The drop resumed a 13-month-long decline that was only broken (briefly) in July 2002 due to sales of camera-equipped models. Moreover, shipments of PHS handsets fell by 64 percent to 73,000 units (extending their losing streak to 18months!).

Why is J-Phone hurting so bad?

The drop in ARPU could be related to the fact that both DoCoMo and KDDI now have camera-equipped keitais on the market (although DoCoMo’s isn’t Java-enabled). Are we seeing the end of the camera-phone bubble? If so, there’s little else on the horizon to serve as the next market booster — except, of course, 3G speed-optimized services (and KDDI’s got the better network right now).