The Communication and Information network Association of Japan (CIAJ) announces the telecommunication equipment and trade figures for FY2014 April through March) as follows.
Prime Minister Abe’s fiscal policies, or Abenomics, has fueled the bullish stock market and the weaker yen, helping the turnaround in corporate performance and improvement in unemployment statistics. However, the slow recovery in demand following the rise in consumption tax the low overall capital investment in manufacturing facilities in the latter half of the fiscal year has weighed down the overall economic recovery, including smaller to mid—sized enterprises.
According to the Indices of Industrial Production compiled by the Ministry of Economics, Trade and Industry, total domestic production of telecommunication equipment shrank by 11.5% over FY2013 despite the fourth straight year of two-digit growth in demand for wireless network equipment, extending the consecutive decline in year-over-year statistics to ten years. The total value of exports in FY2014 recorded the second consecutive two-digit year-over-year growth of 24.5%, while the total value of imports grew year-over-year by 3.2%, ending a four-year streak in two-digit growth according to the Trade Statistics of Japan released by the Ministry of Finance.
I. Domestic Production
The total value of production in FY2014 was 913.1 billion yen, or negative 11.5% growth over FY2013 recording the third consecutive year of two-digit decline.
[By categories]
 Wireline terminal equipmentOf which: | 69.5 billion yen | (-12.2% over FY2013) |
| Telephone sets: | 3.9 billion yen | (-17.6% over FY2013) |
| Applied telephone equipment: | 63.8 billion yen | (-11.5% over FY2013) |
| Mobile terminal equipment Of which: | 290.5 billion yen | (-25.4% over FY2013) |
| Mobile phones | 190.5 billion yen | (-31.5% over FY2013) |
| Public-use PHS | 6.5 billion yen | (-35.7% over FY2013) |
| Wireline network equipment Of which: | 241.0 billion yen | (-22.2% over FY2013) |
| Switching systems | 81.3 billion yen | (-17.2% over FY2013) |
| Transmission equipment | 159.7 billion yen | (-24.5% over FY2013) |
| Wireless network equipment Of which: | 237.3 billion yen | (+24.1% over FY2013) |
| Fixed telecommunication devices | 76.0 billion yen | (+7.9% over FY2013) |
| Base station equipment | 161.3 billion yen | (+33.5% over FY2013) |
| Network access equipment | 50.5 billion yen | (+25.5% over FY2013) |
| Wireline parts | 22.4 billion yen | (+12.4% over FY2013) |
<<Noteworthy developments in 2014>>
- Despite lower domestic demand over the previous year, overseas demand for key telephones and multi-purpose facsimiles left domestic production of wireline terminal equipment flat.
- 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 of mobile terminal equipment. The figure for mobile phones is now approximately 30% of what it was in FY2011.
- In wireline network equipment, demand for switching systems remained flat, but capital spending in digital transmission equipment has tapered off after a round of investment by both domestic and overseas carriers and businesses, resulting in a significant drop of approximately 45% over the previous year.
- In wireless network equipment, despite the slowdown in base station enhancements and communication satellite launches in the domestic market, strong demand overseas in these two categories led to an overall jump in production figures over the previous year.
- Network access equipment figures, such as routers and LAN switches, showed significant growth over the previous year. Meanwhile, wireline parts indicated fourth consecutive positive growth due to demand from overseas.
II. Exports
The total figure for exports in FY2014 was 491.6 billion yen (+24.5% year-over-year growth), recording positive growth for the second consecutive year.
| Telephone sets and terminal equipment | 6.7 billion yen |
| Mobile phones | 3.6 billion yen |
| Facsimiles | 0.3 billion yen |
| Cordless handsets for landline phones | 0.2 billion yen |
| Other | 2.6 billion yen |
| Network equipment | 171.6 billion yen |
| Base stations | 25.1 billion yen |
| Data communication equipment | 141.2 billion yen |
| Other network equipment | 5.3 billion yen |
| Parts* | 313.3 billion yen |
Year-over-year change in growth rate by category were – 50.6% for mobile phones, + 12.2% for facsimiles, -16.7% for cordless handsets, +249.7% for base stations, +6.0% for data communication equipment, +19.7% for other network equipment and +30.4% for parts.
*Note: The Ministry of Finance ceased to categorize equipment into wireline and wireless as of FY2007.
By region, Asia was 345.0 billion yen (+32.6% year-over-year growth, accounting for 70.2% of the overall figure), of which China was 219.5 billion yen. North America was 73.5 billion yen (-16.7% year-over-year growth, accounting for 15.0% of the overall figure), of which the U.S. accounted for 72.0 billion yen. Europe was 35.7 billion yen (+25.2% year-over-year growth, accounting for 7.3% of the overall figure) of which the EU was 29.8 billion yen.
III. Imports
The total figure for imports in FY2014 was 2.702 trillion yen (+3.2% year-over-year growth), halting the four-year consecutive double digit annual growth.
| Telephone sets and terminal equipment | 1,728.2 billion yen |
| Mobile phones | 1,706.9 billion yen |
| Facsimiles | 5.6 billion yen |
| Cordless handsets for landline phones | 7.6 billion yen |
| Other | 8.1 billion yen |
| Network equipment | 647.2 billion yen |
| Base stations | 66.8 billion yen |
| Data communication equipment | 555.6 billion yen |
| Other network equipment | 24.8 billion yen |
| Parts* | 326.9 billion yen |
*Note: The Ministry of Finance ceased to categorize equipment into wireline and wireless as of FY2007.
On a year-over-year basis, mobile phones showed the first single-digit growth in five years (+1.9%) after recording 30% to 60% growth from FY2009. Other categories include facsimiles (+22.7% year-over-year growth), cordless telephones (+4.7% year-over-year growth), base stations (-1.4% year-over-year growth), data communication equipment (+2.5% year-over-year growth), other network equipment (+5.4% year-over-year growth) and parts (+7.5% year-over-year growth).
By region, Asia was 2.542 trillion yen (+3.2% year-over-year growth, accounting for 94.1% of the overall figure), of which China was 2.116 trillion yen. North America was 80.9 billion yen (+1.6% year-over-year growth, accounting for 3.0% of the overall figure), of which the U.S. accounted for 77.4 billion yen. Europe was 41.6 billion yen (+25.6% year-over-year growth, accounting for 1.5% of the overall figure) of which the EU was 40.9 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
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
