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Mobile phone shipments in Japan fell in March, but shipments exceeded the 4.5 million unit mark for the first time in a year as more consumers upgraded to next-generation models. Shipments by Japanese mobile phone makers fell 0.6 percent in March to 4.74 million units, compared with 4.77 million a year earlier, the Japan Electronics and Information Technology Industries Association (JEITA) said on Tuesday (May 17). "Although March marked a year-on-year decline due to high results last year, shipments broke the 4.5 million mark for the first time in 12 months, exceeding 4 million for the second straight month," JEITA said in a statement.
The industry group said mobile operators benefited from a surge in demand for 3G (third-generation) phones in February and March.
Consumers who had bought new phones in 2003 when camera phones became popular are seen as the catalyst behind such brisk sales. Users on average own their phones for about two years before switching to new models.
JEITA said in December that it considered 2005 to be the turning point for the adoption of 3G. It expects mobile phone demand in Japan to rise to 49.3 million units in the business year just started.
On a fiscal year basis, shipments slipped 12.2 percent to 44.77 million units in the year ended in March, down from 51.02 million units in the same period a year earlier. That compared with JEITA's previous forecast of 46.0 million units.
NEC Corp, Matsushita Electric Industrial Co Ltd and Sharp Corp are the nation's three biggest mobile phone makers, covering about half the market.

Copyright Reuters, 2005

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