News
Issue #2002 - 41 (October 2002)
(Updated Oct. 29, 2002)

MARKET OUTLOOK and TRENDS 

Japanese Phone Market Update

Source: News story written by Mala Nugehally, Special to MobileInfo.Com 

The Japanese phone market has always been the test-bed for snazzy new phone features. J-Phone just announced the sale of 7 million 'Sha-mail' photo-capable handsets since June 2001 and, in the process claims to have converted 54 percent of its subscriber base to this service. Given the current gloom in Japan's economic and business climate, it seems to be quite an achievement for J-Phone (11 million subscribers) to convert more than half its customer base in less than 2 years. According to MMJ, what really clicked for J-Phone is its commitment to provide an exceptional wireless experience to its user. The camera phone is actually said to work accurately and comes with a fun interface. Since its March 2002 launch, J-Phone has signed up 800,000 subscribers to its 'Movie Sha-Mail' movie phone service.

In a move to consolidate its already large market share of liquid crystal displays (LCDs), Sharp unveiled a screen with microprocessor circuitry built directly onto the glass screen. This would enable the display to function as a computer and possibly also to hold mobile data. The company envisages to have products with the advanced circuitry available by 2005. Consumers can envision a pocket-size 'display card' that can store data for use with various gadgets from mobile phones and games machines to car navigation systems. 

Comparing the challenge of putting processor circuitry on glass to "building a skyscraper on rubber" is Semiconductor Energy Laboratory Ltd, Sharp's partner in the project. According to Mikio Katayama, head of Sharp's mobile display division, "This could be something the size of a business card, perhaps with a wireless function and touch-screen input."

In another major shift in strategy, Intel is seeking a development relationship with NTT DoCoMo. According to Tony Sica, Director of Marketing for Intel's Wireless Computing Group, Intel is "trying to understand their needs." Intel has placed a significant effort into developing the Manitoba microchip, which combines both wireless processing and memory functions onto the same microchip, thereby cutting space and costs. With Manitoba targeted for 2004, Intel plans to woo Japanese handset suppliers some of which are direct Intel competitors to become Intel customers. 

For more information: http://www.wirelesswatchjapan.com/index.htm

MobileInfo Comments and Advisory: This is a remarkable success for J-phone in difficult business climate. Japan and Korea continue to lead the world in mobile applications. Is'nt it true that sun rises first in Japan? Wish we knew how to translate that success to North American setting!

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