Decline in profit margins due to shortages of smartphones and changes in sales terms
First written in FY2022-Q3. 9 of 14 entries say "Materialised", first in FY2022-Q3. Latest entry: 2026-08-10.
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- FY2026WorsenedAnnual report
「Although we continued to hold sales events outside our stores, we were unable to meet our target for the number of line contracts because telecommunications carriers revised their incentive measures, and we were unable to cover the costs of holding the events.」
The revision of telecommunications carriers’ incentive programs materialized as a failure to meet the target for mobile line contracts and an inability to recover sales event costs. The longer replacement cycle resulting from higher device prices also continues. - FY2026-H1WorsenedAnnual report
「In the mobile business, the replacement cycle has lengthened as smartphone prices have risen, causing smartphone unit sales to stagnate. Meanwhile, the number of SIM-only mobile contracts increased, resulting in a higher number of new mobile line acquisitions compared with the previous interim consolidated accounting period.」
While the longer replacement cycle caused by higher smartphone prices and sluggish device unit sales continued, the proportion of SIM-only mobile contracts increased. The mobile business as a whole posted higher revenue due to increases in new mobile line acquisitions and average selling prices, although risks related to device sales remain. - FY2025-H1WorsenedAnnual report
「In the mobile business, the replacement cycle has lengthened as smartphone prices have risen, causing smartphone sales to stagnate. Meanwhile, the proportion of SIM-only mobile contracts has increased, resulting in lower revenue compared with the previous interim consolidated accounting period.」
In addition to the longer replacement cycle resulting from higher device prices, the rising proportion of SIM-only mobile contracts led to stagnant smartphone sales and lower revenue. - FY2024-Q1MaterialisedAnnual report
「In the mobile business, smartphone price increases have lengthened the replacement cycle.」
The longer replacement cycle resulting from higher smartphone prices has continued as an actual business condition and is a factor requiring the company to secure unit sales. - FY2023MaterialisedAnnual report
「Smartphone unit sales declined compared with the previous consolidated fiscal year. The factors included the reversal of the increase in customers wishing to migrate to the “Y!mobile” brand during the first quarter of the previous fiscal year, and a longer replacement cycle resulting from price increases for core smartphones due to the weaker yen and other factors.」
The reversal of demand for plan and brand migrations, higher device prices due to the weaker yen, and longer replacement cycles were reflected in the full-year results as lower smartphone unit sales. - FY2023-Q3MaterialisedAnnual report
「The factors included the reversal of the increase in customers wishing to migrate to the “Y!mobile” brand during the first quarter of the previous fiscal year, and price increases for core smartphones due to the weaker yen and other factors.」
The reversal of demand for plan migrations and higher device prices due to the weaker yen continued to materialize as lower smartphone unit sales. Together with lower sales incentive fees, this resulted in a segment loss for the mobile business. - FY2023-Q2MaterialisedAnnual report
「Profit margins per contract declined because customers wishing to migrate to the “Y!mobile” brand surged in the first quarter of the previous fiscal year, while smartphone unit sales declined from the cumulative second quarter of the previous fiscal year as the prices of core smartphones were raised due to the weaker yen and other factors. The decline in sales incentive fees resulting from revised payment terms at telecommunications carriers also contributed.」
In addition to the reversal of demand from the previous fiscal year’s migration to different plans and revised carrier payment terms, the impact of higher device prices due to the weaker yen materialized as declines in unit sales, sales incentive fees, and profit margins per contract. - FY2023-Q1MaterialisedAnnual report
「Compared with the first three months of the previous consolidated fiscal year, when customers seeking to switch to the Y!mobile brand surged, smartphone unit sales declined. In addition, a review of payment terms by telecommunications carriers reduced sales incentive commissions, resulting in a lower profit margin per contract.」
The continuing effects of telecommunications carriers’ revisions to sales terms and customers’ migration to lower-priced plans, already identified in the previous fiscal year, materialized as declines in unit sales, sales incentive fees, and profit margins per contract. - FY2022MaterialisedAnnual report
「Per-unit margins on smartphones declined due to lost sales opportunities from shortages of popular smartphone models caused by the global semiconductor shortage and other factors, revisions by telecommunications carriers to the payment terms for sales incentive fees, and an increase in the proportion of sales through sub-brands offering lower-priced plans.」
The company also explained in its full-year results that semiconductor shortages and the resulting inventory shortages and lost sales opportunities, revised sales incentive terms, and a higher sub-brand sales ratio led to lower per-unit margins on smartphones. - FY2022-Q3MaterialisedAnnual report
「However, per-unit margins on smartphones declined due to lost sales opportunities from shortages of popular smartphone models caused by the global semiconductor shortage and other factors, revisions by telecommunications carriers to the payment terms for sales incentive fees, and an increase in the proportion of sales through sub-brands offering lower-priced plans.」
The company states that semiconductor shortages caused device inventory shortages and lost sales opportunities, while revised sales incentive terms at telecommunications carriers and a higher proportion of sub-brand sales led to lower per-unit smartphone margins.