Victor Pikula wrote:
> * "GSM technology needs more space"
>
> GSM is, arguably, *not* more advanced than PDC by any means, at least I
> wouldn't know how or why. Maybe someone else could discuss this in more
> detail. \x72 \x65 \x6e \x66 \x69 \x65 \x6c \x64, are you reading, over?
>
Don't know much about GSM so I can't comment. Although I'm fairly sure the
technical simplicity of PHS lends itself to smaller handsets and weaker batteries.
> * "Japanese manufacturers have a grip on components"
>
> They do produce them in-house in some cases. Also, tight industrial
> relationships with component suppliers exist. Could Jeffrey Funk tell us more
> about this one? Please?
I agree -- the cozy relationship between operators and manufacturers means
time-to-market for advanced handset features like color screens is shortened
considerably.
One other simple economic explanation: it is most profitable to sell the cheapest
product you can for the highest price the market will bear. In a very advanced
competitive market like Japan, the only way to distinguish between handsets is
price and handset features; service/coverage/etc. are all basically equal. In the
US, because of the state of network coverage, you must first find the operator
that covers your area, and because of the differences in service/coverage, there
isn't much need to differentiate offerings with advanced handsets. Also US
cellphone use derives from car phones, so the market is willing to bear larger
handsets.
Fundamentally, cellphones are selling very well in the US, so why spend money to
make more expensive advanced handsets? Of course this will have to change when,
eventually, you can by a more advanced phone from a Japanes manufacturer that
works in the US.
r e n
--
ascii: r e n f i e l d
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hex: \x72 \x65 \x6e \x66 \x69 \x65 \x6c \x64
morgan stanley dean witter japan
e-business technologies | engineering and strategy
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Received on Thu Mar 15 02:06:14 2001