April.27.2005 Mobile phone shipment report of Japanese market in 2004 FY MM Research Institute has researched on Japanese mobile phone market of year 2004 (Japanese Fiscal Year) and released the analysis report on the unit shipment. Total shipment has been 4,397 million units, 12.2% down from last year. In 2004, the market has suffered from the lack of hit product, likeness of mega-pixel camera of 2003, and vendors also needed to control the shipment level to solve the over supply situation from last year. These were the main reasons behind the decline. The market for 3rd generation (3G) mobile phone is expanding. At the end of 2004(FY) subscriber has reached 30.4 million, which represents 35% of total subscribers (87 Million). Most of 2G users, who terminated the contract, have moved to 3G. It is expected that 3G mobile users will expand in proportion to the decrease of 2G users, and 3G subscribers are forecasted to increase up to around 55% of total subscribers by the end of 2005. Vendors’ competition looks fierce. It is not only Panasonic has closed on NEC, the top vendor in past 4 years, but Sharp is gaining the share rapidly and margin between three vendors are closing all the time. * 3G mobile users will increase to 55% of market in 2005(FY) Unit shipment for 2005(FY) is expected to increase by 1.7%, which is 44.7 million units. Number of new subscribers will decline for both 2G and 3G, but the current Docomo and Vodafone 2G users are likely to move on to 3G service, which will raise the replacement demand. Subscriber ratio of 2G and 3G users will be turned over, and 55% of subscribers will be 3G. By the end of 2006 it is expected to raise as much as 75%. Enforcement of “Personal phone number law”　and arrival of new carriers are the reason for the forecasted growth. Expected unit shipment for 2006 will be 48.2 million, 7.8% more than 2005.