Decline in store visitors due to tighter regulation of handset purchase subsidies

「Meanwhile, visitor numbers continued to stagnate due in part to the reversal of the surge in demand associated with the termination of FOMA service in March this year, and the number of units sold, revenue and gross profit declined from the same period of the previous year.」

「Meanwhile, visitor numbers continued to stagnate due in part to the reversal of the surge in demand associated with the termination of FOMA service in March this year, and the number of units sold, revenue and gross profit declined from the same period of the previous year.」

「In the store business, device sales remained firm, supported by increased demand to switch services following the termination of the FOMA service in March.」

「来店者数は減少傾向が続く一方、販売台数は底堅く推移。」

「The entire store business struggled, and earnings remained weak.」

「Declining revenue from the store business due to slowing growth in the smartphone market and the expansion of online sales」

「However, units sold fell below expectations, primarily due to the decline in store traffic associated with the increase in online procedures and the end of the replacement cycle for corporate users, among other factors.」

「However, although revenue increased, operating profit declined due to the spread of online procedures, declining store traffic resulting from the resurgence of infections, and changes in conditions, including commissions, imposed by telecommunications operators.」

「In the store business, customer visits increased substantially to 248% of the previous fiscal year's level as the pandemic subsided. However, amid unstable handset supplies caused by the global semiconductor shortage, units sold declined 4% from the previous fiscal year, while revenue increased 12.1% as the company worked to strengthen staff customer-service skills.」

「In the store business, the resurgence of infections created circumstances that forced the company to refrain from holding events and take similar measures.」

「Although units sold increased 74.4% year on year and revenue increased 65.8% year on year, partly because online procedures had become established as the COVID-19 pandemic continued and a fourth wave led to another state of emergency, results did not recover to pre-pandemic levels.」

「As the spread of the third wave shifted the recovery trend back toward a slowdown, lost sales opportunities arose from declining store traffic, and units sold for mobile devices declined.」

「As the second wave of the COVID-19 pandemic arrived, store traffic declined substantially due to recommendations to complete procedures online and restrictions on events, from an infection-prevention perspective.」

「At the stores, store traffic and units sold declined substantially due to the impact of restricted operating hours and other measures.」

「However, the October 2019 amendment to the Telecommunications Business Act required the complete separation of communication charges and device prices and imposed certain limits on device discounts, leading individual customers to hold back purchases and extending replacement cycles, which resulted in a substantial decline in mobile phone units sold.」

「However, the October 2019 amendment to the Telecommunications Business Act required the complete separation of communication charges and device prices and imposed certain limits on device discounts, leading individual customers to hold back purchases and extending replacement cycles, which resulted in a substantial decline in mobile phone units sold.」

「However, as consumers increasingly took a wait-and-see approach to the entry of Rakuten Mobile as a carrier and the new plans introduced by each operator following legislative amendments requiring the complete separation of communication charges and device prices, and as they held back purchases ahead of the launch of the new iPhone, mobile phone units sold declined substantially.」

「We had expected a rush in demand for "docomo with" and "Device Purchase Support," both of which were to end with the introduction of the new plans ("Gigaho" and "Gigalite"). However, consumers were increasingly taking a wait-and-see approach ahead of the launch of Rakuten Inc.'s service as the fourth carrier, resulting in units sold falling below the same period of the previous year.」

「Although units sold fell below the previous fiscal year due to the poor performance of the spring campaign for corporate customers and the end of the peak in individual tablet demand, corporate services recovered in the second half, and selling, general and administrative expenses declined due to the absence of relocation-related costs for the Hacchobori store (formerly the Kayabacho store), among other factors. However, during the winter peak sales season, all Docomo shops posted results below the previous year's level.」

「However, in addition to declines in store traffic and units sold, the campaign for corporate customers targeting the new fiscal year performed poorly, while large-scale projects declined as the business entered a trough in the handset replacement cycle.」

「In addition to the revenue benefit from the launch of the new iPhone, the expanded trading area of the Hacchobori store following its relocation, together with focused advertising and promotional activities, including advance publicity in the surrounding area, resulted in increases in store traffic and units sold.」

「Following the discontinuation of "effectively ¥0 sales" in accordance with the Ministry of Internal Affairs and Communications' "Guidelines on the Proper Provision of Subsidies for Smartphone Purchases (*)", the downward trend in store traffic continued.」

「Following the discontinuation of "effectively ¥0 sales" in accordance with the Ministry of Internal Affairs and Communications' "Guidelines on the Proper Provision of Subsidies for Smartphone Purchases," the downward trend in store traffic has continued.」

「Following the discontinuation of "effectively ¥0 sales" in accordance with the Ministry of Internal Affairs and Communications' "Guidelines on the Proper Provision of Subsidies for Smartphone Purchases," the downward trend in store traffic has continued.」

「Following the discontinuation of "effectively ¥0 sales" in accordance with the Ministry of Internal Affairs and Communications' "Guidelines on the Proper Provision of Subsidies for Smartphone Purchases," the downward trend in store traffic has continued.」