“Japanese cellphone makers need to either look overseas, or exit the business,” said Kenshi Tazaki, a managing vice president at the consulting firm Gartner Japan.
At a recent meeting of Natsuno’s group, 20 men and one woman crowded around a big conference table in a skyscraper in central Tokyo, examining market data, delivering diatribes and frequently shaking their heads.
The discussion then turned to the cellphones themselves. Despite their advanced hardware, handsets here often have primitive, clunky interfaces, some participants said. Most handsets have no way to easily synchronize data with PCs as the iPhone and other smartphones do.
Because each handset model is designed with a customized user interface, development is time-consuming and expensive, said Tetsuzo Matsumoto, senior executive vice president at Softbank Mobile, a leading carrier.
“Japan’s phones are all ‘handmade’ from scratch,” he said. “That’s reaching the limit.”
Then there are the peculiarities of the Japanese market, like the almost universal clamshell design, which is not as popular overseas. Recent hardware innovations, like solar-powered batteries or waterproofing, have been incremental rather than groundbreaking.
The emphasis on hardware makes even the newest phones here surprisingly bulky. Some analysts say cellphone carriers stifle innovation by demanding so many peripheral hardware functions for phones.
The Sharp 912SH for Softbank, for example, comes with an LCD screen that swivels 90 degrees, GPS tracking, a bar-code reader, digital TV, credit card functions, video conferencing and a camera, and is unlocked by face recognition.
Meanwhile, Japanese developers are jealous of the runaway global popularity of the Apple iPhone and Apple Store, which have pushed the US and European cellphone industry away from its obsession with hardware specifications to software.
“This is the kind of phone I wanted to make,” Natsuno said, playing with his own iPhone 3G.
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