HOME > Press/News > Back Number 2016 > CIAJ Announces Telecommunication Equipment Production and Trade Figures For the First Half of FY2016 (April – September) – Domestic production decline continues, imas exports shrink 20% with strong yen –

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CIAJ Announces Telecommunication Equipment Production and Trade Figures For the First Half of FY2016 (April – September) – Domestic production decline continues, imas exports shrink 20% with strong yen –

2016-12-14

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, 2016 as follows.
The Cabinet Office of Japan announced a +1.3% real GDP (annual) for July – September (2nd update), lowering the number from its initial announcement due to lasting sluggishness in exports and capital expenditure in facilities. The domestic telecommunication equipment market reflected the impact of drop in demand for mobile phone upgrades with new guidelines, shrinking demand for switching systems with PSTN migration and the end of an infrastructure investment cycle for digital transmission equipment and radio network equipment, which, in sum, dramatically pushed domestic production downwards.
The total value of production in the first half of FY2016 was 278.8 billion yen (-17.3% year-over-year growth). The total figure for exports was 220.3 billion yen (-21.2% year-over-year growth) while imports was 1.149 trillion yen (-13.0% year-over-year growth).

I. Production Trends (from METI’s “Indices of Industrial Production”)

(1) Actual figures for first half of FY2016
The total value of domestic production in the first half of FY2016 was 278.8 billion yen (-17.3% year-over-year growth), recording the eighth consecutive half year negative growth.

(2) Figures by equipment categories

  1. Wireline terminal equipment: 31.7 billion yen (+1.7% year-over-year growth) of which:
    Telephone sets accounted for 1.8 billion yen (-2.5% year-over-year growth), telephone application equipment was 29.3 billion yen (+2.6% year-over-year growth) and facsimile equipment was 600 million yen (-22.3% year-over-year growth). Of telephone application equipment, key telephones accounted for 14.1 billion yen (+15.0% year-over-year growth) and intercoms 15.2 billion yen (-6.7% year-over-year growth).
  2. Mobile terminal equipment: 92.0 billion yen (-16.4% year-over-year growth) of which:
    Mobile phones accounted for 64.9 billion yen (-25.6% year-over-year growth) and public-use PHS terminals was 600 million yen (-65.0% year-over-year growth). With the implementation of guidelines concerning smartphones banning actual cost \0 terminals, consumers held back from upgrading their devices and led to a significant drop in the numbers.
  3. Wireline network equipment: 69.6 billion yen (-20.5% year-over-year growth) of which:
    Switching systems accounted for 17.2 billion yen (-31.0% year-over-year growth) and transmission equipment was 52.4 billion yen (-16.4% year-over-year growth). The conclusion of central office switching system upgrades for PSTN migration resulted in a dramatic drop in the numbers. The conclusion of the latest round of investment in digital transmission equipment pushed down the numbers for all transmission equipment.
  4. Wireless network equipment: 57.5 billion yen (-25.7% year-over-year growth) of which:
    Fixed telecommunication equipment accounted for 16.2 billion yen (-30.8% year-over-year growth) and base stations: 41.3 billion yen (-23.5% year-over-year growth). Despite higher domestic demand for base stations, the penetration of foreign brands pushed domestic production lower.
  5. Network access equipment (routers, LAN switches, etc.): 14.6 billion yen (-13.7% year-over-year growth).
  6. Wireline parts: 13.3 billion yen (-3.9% year-over-year growth).

II. Exports (from Ministry of Finance’s “Trade Statistics”)

(1) Actual figures for first half of FY2016

The total figure for exports in the first half of FY2016 was 220.3 billion yen (-21.2% year-over-year growth).
The large drop in parts figures had an impact on the entire category. The slow growth in demand for mobile phones in China and emerging markets plus the stronger yen led to the drop in production of parts with the exception of advanced feature parts for mobile phones.

(2) Figures by equipment categories

  1. Telephone sets and terminal equipment: 2.2 billion yen (-20.0% year-over-year growth) of which:
    Mobile phones accounted for 700 million yen (-48.0% year-over-year growth), facsimiles was 100 million yen (-31.7% year-over-year growth), cordless handsets for landline phones was 100    million yen (-26.3% year- over-year growth) and other was 1.2 billion yen (+19.1% year-over-year growth).
  2. Network equipment: 75.4 billion yen (-16.5% year-over-year growth) of which:
    Base stations accounted for 6.8 billion yen (+27.8% year-over-year growth), data communication equipment was 66.1 billion yen (-19.6% year-over-year growth) and other network equipment was 2.4    billion yen (-9.7% year-over-year growth).
  3. Parts: 142.7 billion yen (-23.5% year-over-year growth).

(3) Figures by region
By region, Asia was 162.0 billion yen (-23.6% year-over-year growth), of which China was 97.3 billion yen (-33.4% year-over-year growth). Of the parts total of 142.7 billion yen, exports to China accounted for 88.6 billion yen, or 62.1% of the total figure, dropping by approximately 10% from last year’s 71.9%.
North America was 30.9 billion yen (-17.2% year-over-year growth), of which the U.S. accounted for 30.3 billion yen (-17.5% year-over-year growth). Europe was 18.8 billion yen (-1.3% year-over-year growth) of which the EU was 17.1 billion yen (+6.4% year-over-year growth).

III. Imports (from Ministry of Finance’s “Trade Statistics”)

(1) Actual figures for first half of FY2016

The total figure for imports in the first half of FY2015 was 1.149 trillion yen (-13.0% year-over-year growth). Overall, there was a drop in demand for mobile phones and data communication equipment, pushing the entire figure significantly lower.

(2) Figures by equipment categories

  1. Telephone sets and terminal equipment: 747.9 billion yen (-11.3% year-over-year growth) of which:
    Mobile phones accounted for 740.0 billion yen (-11.2% year-over-year growth), facsimiles was 2.3 billion yen    (+27.9% year-over-year growth), cordless handsets for landline phones was 2.3    billion yen (-17.9% year-over-year growth) and other was 3.3 billion yen (-29.1% year-over-year growth).
  2. Network equipment: 267.7 billion yen (-16.6% year-over-year growth) of which:
    Base stations accounted for 10.4 billion yen (+62.7% year-over-year growth), data communication equipment was 248.9 billion yen (-17.7% year-over-year growth) and other network equipment was 8.4 billion yen (-32.0% year-over-year growth).
  3. Parts: 133.9 billion yen (-14.9% year-over-year growth).

(3) Figures by region
By region, Asia was 1.825 trillion yen (-12.8% year-over-year growth), of which China was 923.4 trillion yen (-11.6% year-over-year growth), accounting for 80.3% of the global total of 1.149 trillion yen. Of the 740.0 billion yen total for mobile phone imports, imports from China accounted for 779.3 billion yen, or 91.8% of the total figure.
Imports from North America was 33.9 billion yen (-17.4% year-over-year growth), of which the U.S. accounted for 32.6 billion yen (-16.5% year-over-year growth). Europe was 16.0 billion yen (-12.3% year-over-year growth) of which the EU was 15.6 billion yen.

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