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Dubbed "Galapagos" phones because they have
evolved to meet unique Japanese standards and tastes, flip-phone
shipments rose 5.7 percent to 10.58 million in 2014, data from
market researcher MM Research Institute Ltd shows. Smartphone
shipments fell 5.3 percent to 27.70 million, down for a second
year.
Users in Japan pay some of the highest smartphone fees among
developed nations, the telecommunications ministry says, while
flip-phone rates are among the lowest. Many Japanese accustomed
to years of deflation are content with old-style flip-phones
offering voice calling, email and in most cases basic Internet
services.
Japanese electronics companies Panasonic Corp and NEC Corp have
pulled out of the consumer smartphone business, unable to
compete with dominant brands Apple Inc and Samsung Electronics
Co Ltd. They still make flip-phones, though, competing in a
crowded market with Fujitsu Ltd and Sharp Corp, among others.
But with a mobile penetration rate of 98.5 percent, or 125
million subscriptions, there is little scope for significant
overall growth in Japan's mobile market, MM Research said. "Smartphones
are also peaking in terms of functionality and they tend to last
a long time as well, so there are fewer renewals," said MM
Research Executive Analyst Hideaki Yokota. He said 2014 was a
particularly strong year for renewals in the subscription cycle
for flip-phones, suggesting that last year's growth may not be
repeated this year.
Japan's mobile phone shipments: http://link.reuters.com/gex93w
(Editing by Edmund Klamann)
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