To: waitwatchwander who wrote (5262 ) 9/24/2002 2:53:49 PM From: waitwatchwander Respond to of 12247 Strong Japan camera phone production projected for 2002, 2003 digitimes.com Compiled from outside sources by Lisa Tsai, Research Center; Chou Hua-hsin, DigiTimes.com [Tuesday 24 September 2002] Japan’s production of camera phones is expected to rise by more than four-fold to 18.89 million units in 2002, reported Nikkei Market Access. The estimate compares with only 4.41 million units made in the country last year and represents 46% of Japan’s mobile phone production, up from 9% last year. In 2003, production of camera-equipped phones in Japan is forecast at 32.79 million units, or 81% of the country’s handset market. Japan is the world’s first market to offer camera-equipped mobile phone services, which allow users to take and send photos wirelessly to other handsets and PCs. J-Phone, Japan’s third-largest mobile operator, pioneered the market with its “Sha-mail” photo service last year. Nikkei said that thanks to camera phones, Japan’s mobile phone production, which had been flagging for the first half, grew strongly in summer as carriers KDDI and NTT DoCoMo launched competing photo services. Some market participants have even suggested the possibility of a phone shortage during the year-end holiday season. In the developed markets of Europe and Asia, phone carriers and vendors are weighing in with products with built-in cameras. Vodafone expects to offer photo service in the fall. Nokia, which started selling its first camera phone around mid-year, plans to introduce new models in 2003. Samsung Electronics is also mass-producing camera phones. Nikkei noted that despite the market buzz, growth outside Japan is uncertain because camera phones are expensive, potentially limiting interest from price-sensitive markets like Europe and the US. Production of camera phones outside of Japan may reach 1.11 million units, it predicted, before rising to 9.45 million units in 2003.