Monday, December 13, 2004
Posted by Roberto
6:01 PM
0 comments
JAPAN
THE WORLD'S MOST-ADVANCED CELLULAR MARKET
Japan is the world's most advanced 3G market (the service is in its fourth year). NEC, Panasonic, and Sharp are ahead in the mobile-Internet business but they are facing a rapidly maturing market where the average profit margins have slipped to just 4% (11 Japanese mobile-phone makers = cutthroat rivalry).
The days of double-digit profit margins are over. The production cost of 2G phones was about 20% less than that of 3G handsets but the selling price is about the same. All of Japan's handset makers combined have a smaller share of the global market than Nokia alone: 16% for the Japanese, compared with 29% for Nokia. Factor out their home market, and the Japanese share drops to just 6% (less than Motorola's 14% or Samsung's 13%).
With their home market saturated, Japan's handset makers have to go after international markets to sell superior third-generation mobile phones.
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