The Communication and Information network Association of Japan (CIAJ) announces the telecommunication equipment and trade figures for FY2012 April through March) as follows.
Total domestic production was 1.177 trillion yen, or negative 11.2% growth over FY2011. The anouncement of FY2011 figures a year ago led to views that the 5-year decline had finally hit bottom, but the FY2012 number indicates a further drop in production. The total value of exports in FY2012 was 295.5 billion yen (- 11.5% year-over-year growth) while the total value of imports was 2.152 trillion yen (+31.6% year-over-year growth).
Even though the explosive popularity of smartphones and the accompanying spike in traffic did result in robust demand for relevant equipment, domestic production dropped by double-digits. The strong impact of the shift to overseas production and the influx of foreign-made products resulted in extremely weak figures for domestic production and exports.
On the other hand, the recovery efforts following the Great East Japan Earthquake and Tsunami two years ago led to a gradual growth in the first half of FY2012, and the change in Japan’s political leadership last December together with the weaker yen and rising stock market stimulated by the loosening up of monetary policies by the Bank of Japan uplifted business and consumer confidence and finally seems to bear signs of economic recovery. This recovery of the Japanese economy and the domestic telecommunication equipment market, together with the large growth in the global telecommunication equipment market are opportunities for Japanese manufacturers to ride the wave and caputre greater market share. CIAJ will monitor global production and shipment figures of our member companies closely to see if such trends materialize.
I. Domestic Production
The total value of production in FY2012 was 1.177 trillion yen, reverting to negative growth despite views a year ago that the 5-year decline had finally hit bottom in FY2011.
[By categories]
 Wireline terminal equipmentOf which: | 69.1 billion yen | (-9.2% over FY2011) |
| Telephone sets: | 5.8 billion yen | (-42.0% over FY2011) |
| Applied telephone equipment: | 63.3 billion yen | (-4.2% over FY2011) |
| Note: The “telegraph & imaging device” category has been eliminated in FY2012. From FY2013, only figures for “facsimile equipment” shall be listed. | ||
| Mobile terminal equipmentOf which: | 542.2 billion yen | (-23.8% over FY2011) |
| Mobile phones | 453.7 billion yen | (-27.5% over FY2011) |
| Public-use PHS | 14.5 billion yen | (-37.7% over FY2011) |
| Wireline network equipmentOf which: | 339.2 billion yen | (-5.2% over FY2011) |
| Switching systems | 125.5 billion yen | (+3.9% over FY2011) |
| Transmission equipment | 213.7 billion yen | (-9.9% over FY2011) |
| Wireless network equipmentOf which: | 162.3 billion yen | (+38.6% over FY2011) |
| Fixed telecommunication devices | 61.6 billion yen | (-7.9% over FY2011) |
| Base station equipment | 100.7 billion yen | (+100.4% over FY2011) |
| Network access equipment | 43.9 billion yen | (+3.1% over FY2011) |
| Wireline parts | 19.8 billion yen | (+1.8% over FY2011) |
<<Noteworthy developments in 2012>>
- Despite demand growth from renewal purchases of key telephones and the shift to multi-purpose facsimiles, the domestic production overall of wireline terminal equipment decreased, accelerated by the shift to overseas production and the entire market shrinking.
- In mobile terminal equipment, despite an increase in the number of subscribers, the influx of foreign brands and the continuing shift to overseas manufacturing led to a large drop in domestic production. The figure for mobile phones is now less than half of what it was in FY2008.
- In wireline network equipment, demand for switching systems grew over the previous year, while digital and other transmission equipment (including optic transmission equipment) decreased over the previous year, with capital investments by telecom carriers slowing down.
- In wireless network equipment, the installation of base stations to accommodate the spread of LTE services and the explosive growth in network traffic led to a doubling of the production figure over the previous year.
- Network access equipment, such as routers and LAN switches, and the wireline parts categories indicate the third consecutive positive growth due to investments in network enhancements to accommodate traffic growth and the popularity of wireless LAN.
II. Exports
The total figure for exports in FY2012 was 295.5 billion yen (-11.5% year-over-year growth), continuing the annual decline since FY2008.
| Telephone sets and terminal equipment | 6.5 billion yen |
| Mobile phones | 3.2 billion yen |
| Facsimiles | 0.9 billion yen |
| Cordless handsets for landline phones | 0.5 billion yen |
| Other | 1.8 billion yen |
| Network equipment | 135.1 billion yen |
| Base stations | 11.0 billion yen |
| Data communication equipment | 120.1 billion yen |
| Other network equipment | 4.0 billion yen |
| Parts | 154.0 billion yen |
Mobile phones indicated positive year-over-year growth (29.1%), while drops were seen in facsimiles (-47.8% year-over-year growth), cordless handsets (-75.5% year-over-year growth), base stations (-38.4% year-over-year growth), data communication equipment (-8.0% year-over-year growth), other network equipment (-6.3% year-over-year growth) and parts (-10.5% year-over-year growth).
By region, Asia was 176.8 billion yen (-12.2% year-over-year growth, accounting for 59.8% of the overall figure), of which China was 61.3 billion yen. North America was 73.3 billion yen (-7.8% year-over-year growth, accounting for 24.8% of the overall figure), of which the U.S. accounted for 68.3 billion yen. Europe was 28.5 billion yen (-16.9% year-over-year growth, accounting for 9.6% of the overall figure) of which the EU was 22.5 billion yen.
III. Imports
The total figure for imports in FY2012 was 2.152 trillion yen (+31.6% year-over-year growth) recording a third consecutive double digit annual growth.
| Telephone sets and terminal equipment | 1,253.7 billion yen |
| Mobile phones | 1,235.4 billion yen |
| Facsimiles | 6.2 billion yen |
| Cordless handsets for landline phones | 6.6 billion yen |
| Other | 5.5 billion yen |
| Network equipment | 602.7 billion yen |
| Base stations | 67.0 billion yen |
| Data communication equipment | 513.9 billion yen |
| Other network equipment | 21.8 billion yen |
| Parts | 295.2 billion yen |
On a year-over-year basis, mobile phones showed significant growth for the fourth consecutive year. Positive growth categories were mobile phones (+49.3% year-over-year growth), facsimiles (+6.3% year-over-year growth), data communication equipment (+17.5% year-over-year growth) and other network equipment (+30.0% year-over-year growth). Negative growth categories were cordless telephones (-7.1% year-over-year growth) and base stations (-2.8% year-over-year growth).
By region, Asia was 1.985 trillion yen (+35.7% year-over-year growth, accounting for 92.3% of the overall figure), of which China was 1.522 trillion yen. North America was 80.6 billion yen (-4.8% year-over-year growth, accounting for 3.7% of the overall figure), of which the U.S. accounted for 77.7 billion yen. Europe was 46.9 billion yen (-24.0% year-over-year growth, accounting for 2.2% of the overall figure) of which the EU was 45.9 billion yen.
Note: The figures mentioned in this press release are based on tallied figures as of the press release date. It is possible that revisions will be made at a future date.
For details, contact:
Mr. Miya
Market Research
CIAJ
tel: 81-3-5403-9356 fax: 81-3-5403-9360 e-mail: s_miya[at]ciaj.or.jp
For more general inquiries, contact:
Mr. Kawai
Corporate Communications
CIAJ
tel: 81-3-5403-9351 fax: 81-3-5403-9360 e-mail: kawai[at]ciaj.or.jp
