The Communications and Information network Association of Japan (CIAJ: a general incorporated association) announces the telecommunication equipment production and trade figures for April through September, 2014 as follows.
The Japanese economy showed signs of gradual recovery in FY2014 with economic and financial measures by the central government, but the longer than expected slowdown in consumer spending following the hike in consumption tax led to the recent announcement of a negative adjustment to the real GDP for the year. The domestic telecommunication equipment market saw the positive impact of the weaker yen in exports, but with manufacturing continuing to shift overseas, imports are expected to remain high. Furthermore, mounting competition from foreign brands will present even greater challenges in the domestic market.
The total value of production in the first half of FY2014 was 389.1 billion yen (-19.5% year-over-year growth). The total figure for exports was 221.6 billion yen (+21.0% year-over-year growth) while imports was 1.721 trillion yen (-9.1% year-over-year growth).
* Production figures calculated by CIAJ based on Indices of All Industry Activity published by the Ministry of Economy, Trade and Industry. Trade figures calculated by CIAJ based on Trade Statistics of Japan published by the Ministry of Finance.
1. Production Trends in the First Half of FY2014
The total value of production in the first half of FY2014 was 389.1 billion yen (-19.5% year-over-year growth), recording the second consecutive year-over-year (fourth consecutive quarterly) negative growth by a significant margin.
[Figures by equipment categories]
- Wireline terminal equipment: 35.7 billion yen (-6.8% year-over-year growth, 9.2% of total figure) of which:
- Telephone sets: 1.9 billion yen (-39.6% year-over-year growth)
- Telephone application equipment: 33.0 billion yen (-2.2% year-over-year growth)
- Facsimile equipment: 800 million yen (-40.7% year-over-year growth)
- Mobile terminal equipment: 110.2 billion yen (-41.2% year-over-year growth, 28.3% of total figure) of which:
- Mobile phones: 83.8 billion yen (-28.9% year-over-year growth)
- Public-use PHS terminals: 5.7 billion yen (+13.9% year-over-year growth)
- Fierce competition with foreign brands in the smartphone market and the shift to overseas manufacturing led to the large drop in domestic production figures.
- Wireline network equipment: 116.6 billion yen (-27.0% year-over-year growth, 30.0% of total figure) of which:
- Switching systems: 42.1 billion yen (-15.7% year-over-year growth)
- Transmission equipment: 74.5 billion yen (-32.2% year-over-year growth)
- The shift to IP and lower prices influenced the PBX figure, while conclusion of the latest round of investment pushed down the numbers for transmission equipment.
- Wireless network equipment: 92.6 billion yen (+40.1% year-over-year growth, 23.8% of total figure) of which:
- Fixed telecommunication equipment: 27.9 billion yen (+31.1 year-over-year growth)
- Base stations: 64.7 billion yen (+44.4% year-over-year growth)
- The growth in fixed telecommunication equipment reflects the healthy demand for disaster prevention/emergency-related systems. The spike in base station production is a reflection of robust demand for communication infrastructure in overseas markets.
- Network access equipment: 22.2 billion yen (+4.1% year-over-year growth, 5.7% of total figure)
- Another consecutive year of positive growth was recorded, helped by the popularity of consumer equipment in relation to the spread of broadband use, and BCP investments by private and public sectors.
- Wireline parts: 11.9 billion yen (+10.1% year-over-year growth, 3.1% of total figure)
- The Wireline parts figure, which includes relay transmission equipment, grew with the increase in telecommunication infrastructure investment.
2. Exports
The total figure for exports in the first half of FY2014 was 221.6 billion yen (+21.0% year-over-year growth)
[Figures by equipment categories]
 Telephones and terminal equipment | 3.4 billion yen (-29.3% year-over-year growth, 1.5% of total figure ) |
| Mobile phones | 1.8 billion yen |
| Facsimiles | 0.1 billion yen |
| Cordless handsets for landline phones | 0.1 billion yen |
| Other | 1.4 billion yen |
| Network equipment | 85.6 billion yen (+17.7% year-over-year growth, 38.6% of total figure ) |
| Base stations | 14.6 billion yen |
| Data communication equipment | 68.6 billion yen |
| Other network equipment | 2.4 billion yen |
| Parts | 132.6 billion yen (+25.6% year-over-year growth, 59.8% of total figure ) |
Despite the shift to overseas manufacturing of terminal equipment, robust demand for communication infrastructure in overseas markets helped push the figures for network equipment and parts significantly higher.
By region, Asia was 147.9 billion yen (+30.4% year-over-year growth, 66.7% of total figure), of which China was 86.5 billion yen. North America was 37.0 billion yen (-22.1% year-over-year growth, 16.7% of total figure), of which the U.S. accounted for 36.2 billion yen. Europe was 17.8 billion yen (+27.7% year-over-year growth, 8.0% of total figure) of which the EU was 14.6 billion yen. Exports to China (+84.2% year-over-year growth), Latin America (+187.2% year-over-year growth), Africa (+104.0% year-over-year growth) and the Middle East (+89.7% year-over-year growth) saw significant growth mainly in base stations and parts.
3. Imports
The total figure for imports in the first half of FY2014 was 1.721 trillion yen (-9.1% year-over-year growth)
[Figures by equipment categories]
| Telephones and terminal equipment | 623.8 billion yen (-16.8% year-over-year growth, 58.2% of total figure ) |
| Mobile phones | 614.3 billion yen |
| Facsimiles | 2.1 billion yen |
| Cordless handsets for landline phones | 3.5 billion yen |
| Other | 3.9 billion yen |
| Network equipment | 300.0 billion yen (+5.4% year-over-year growth, 28.0% of total figure ) |
| Base stations | 35.2 billion yen |
| Data communication equipment | 253.5 billion yen |
| Other network equipment | 11.3 billion yen |
| Parts | 148.3 billion yen (+2.0% year-over-year growth, 13.8% of total figure ) |
Mobile phones, which had been growing at a robust pace, recorded negative growth (-17.0%) in the first half of the year for the first time in 4 years.
By region, Asia was 998.8 billion yen (-9.1% year-over-year growth, 93.2% of total figure), of which China was 803.9 billion yen.
North America was 38.3 billion yen (-11.6% year-over-year growth, 3.6% of total figure), of which the U.S. accounted for 36.9 billion yen. Europe was 16.8 billion yen (-24.2% year-over-year growth, 1.8% of total figure) of which the EU was 19.8 billion yen. Imports of “base stations,” “data communication equipment,” and “parts” recorded positive year-over-year growth, while “mobile phones” decreased by 17.0%, for a total negative growth of 9.1%.
* 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
Market Research
CIAJ
tel: 81-3-5403-9356 fax: 81-3-5403-9360
For more general inquiries, contact
Corporate Communications
CIAJ
tel: 81-3-5403-9351 fax: 81-3-5403-9360
