Domestic smartphone market heating up as Chinese makers crowd market

Competition is growing in the Japanese smartphone market, with the world’s fourth-largest supplier — China’s Oppo Electronics Corp. — preparing to make a foray.

The world’s third-largest smartphone maker, Huawei Technologies Co. of China, has already established itself as a key player in Japan.

By contrast, Tokyo-based Fujitsu Ltd. has decided to sell its mobile phone business due to sluggish sales.

At a news conference in Tokyo last Wednesday, Oppo Japan President Deng Yuchen voiced his determination to establish the Oppo brand in Japan.

Oppo expects its operations in a market with discerning consumers will help the group develop better smartphones.

In the domestic market, 90 percent of the gadgets are sold by the three major mobile phone carriers: NTT Docomo Inc., Softbank Group Corp. and KDDI Corp.

The rest are so-called SIM-free smartphones that allow subscribers to use any carrier they want.

Huawei commands the largest share in the SIM-free segment, followed by Taiwan’s Asustek Computer Inc. The two companies together hold about 50 percent of the segment. Oppo will make the SIM-free slice of the pie even more crowded.

In the meantime, Sony Corp., Kyocera Corp. and Apple Inc. mainly sell their smartphones through Japan’s three major carriers.

The suppliers intend to differentiate themselves with sophisticated products priced at around ¥100,000, including smartphones with powerful filming specs.

Last month, however, a Huawei model was added to KDDI’s smartphone lineup, signaling the shrinking gap between domestic and overseas makers.

Oppo Japan’s Deng told reporters that his company is negotiating with major mobile phone carriers, indicating his intention to expand sales channels.

“Japanese makers lack the punch to mount a serious attack on Apple,” said Ichiro Michikoshi, an analyst at Tokyo-based research firm BCN Inc.

“Chinese suppliers are winning support from users, and they may pose a threat” to Japanese makers, he said.

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https://www.japantimes.co.jp/news/2018/02/11/business/corporate-business/domestic-smartphone-market-heating-chinese-makers-crowd-market/