Where Has the Former 'Electronics Powerhouse' Gone... All Japanese Domestic Phones Dead Except Sony Alone

Balmuda, FNCT and Other Local Companies Withdraw One After Another
Domestic Brands Also Lose Market Share to Apple and Samsung
"Focused on Domestic Development, Failed to Expand Overseas"

Reports have emerged that Japan's native smartphone brands, once hailed as an "electronics powerhouse," are now facing a crisis. Currently, only two companies, Sony and Sharp, design and manufacture smartphones in Japan.

Japanese local media such as Nihon Keizai Shimbun and Jiji Press reported on the 8th (local time) that Japanese electronics manufacturers are withdrawing from the smartphone market.

Nihon Keizai Shimbun pointed out, "The only companies manufacturing smartphones in Japan are Sony and Sharp." Even Sharp has been acquired by Taiwan's Hon Hai Precision Industry.

Japanese IT specialized media 'xTech' described May 2023 as a "nightmare" for Japan's smartphone market, explaining, "Domestic companies are withdrawing and facing business failures one after another. Balmuda has exited the smartphone market, and FNCT announced the suspension of mobile phone device manufacturing and sales."

Sharp smartphone brand 'AQUOS'
[Image source=Sharp]

Concerns are also growing about the two remaining companies, Sony and Sharp. The media noted, "Neither company can be said to have a high global market share, and their dependence on the domestic market is very high, which is indeed a significant risk factor."

In fact, Sony and Sharp, Japan's largest smartphone makers, are struggling even in the domestic market. According to market research firm Strategy Analytics, as of last year, Samsung Galaxy held a 10.5% market share, surpassing Sharp's 10.1% to take second place.

Apple, the number one in the Japanese smartphone market, already holds a majority share of 56.1%.

The reason Japanese brands are losing market share to foreign companies even in their domestic market appears to be due to differences in competitiveness. Sankei Shimbun pointed out, "American companies like Apple and Google reduce costs through mass production to create high-performance devices," highlighting the limitations of Japanese companies that rely on domestic demand.

It added, "The ongoing yen depreciation since last year and semiconductor shortages have led to increased manufacturing costs, accelerating the withdrawals. Before smartphones appeared, more than ten mobile phone manufacturers competed in Japan, but focusing on domestic development led to failure in global expansion," it evaluated.