Tuesday, October 22, 2024

Where did the gadgets go?

Hello, it's Yuki in Tokyo. Japan, home to what once were the world's biggest electronics brands, is embracing its new sidekick role in techn

Japan, home to what once were the world's biggest electronics brands, is embracing its new sidekick role in technology. But first...

Three things you need to know today:

• Qualcomm Inc. unveils a more powerful chip, set to bring laptop capabilities to smartphones.
• After a regulatory onslaught and its stock cratering, Indian fintech company Paytm reports its first-ever net income.
• A scandal over an alleged ex-lover has wiped $3 billion from tech mogul Richard White's fortune.

Japan at your service

Last week, Panasonic Holdings Corp.'s former CEO greeted a sea of suited visitors to CEATEC, Japan's biggest showcase of cutting-edge electronics, just outside Tokyo. "CEATEC has enriched the world through technology while also evolving with societal and technological changes," Kazuhiro Tsuga said, celebrating the forum's 25th year in its current iteration.

That evolution was readily apparent the moment you stepped onto the convention floor. To my eye, the arena was filled with evidence of Japan's withdrawal to a supporting role as a supplier to the world's biggest brands.

Everywhere, spaces were cordoned off for salespeople to sit down and talk with procurement managers. A small crowd of people gathered around Panasonic's glass perovskite solar cells, and earnest staff explained how the solar-processing layer is formed directly on glass. But there were few products for people to try out and add to their wishlists.

Even Sony Group Corp.'s booth was devoid of showcases of new TVs, cool headphones or game consoles. Instead, Japan's leading consumer brand allocated most of its floor space to its latest image sensor technology — important for Apple Inc. or Xiaomi Corp. to make their smartphone cameras work, but not something you'd buy directly.

I wistfully remember how excited I was during my first visit to CEATEC in 2011, convinced I'd gotten a glimpse of the future.

The convention then was an explosion of sound and color. Sony's booth showcased Walkman as a fashion statement, while its tablets displayed a constant stream of pretty scenes from around the world. Long lines snaked across the floor as people waited to try the newly unveiled 3D-compatible head-mounted display with OLED panels, promising an immersive, "theater-like experience whilst relaxing on your living room sofa."

As if to further underline the diminished clout of Japanese tech, CEATEC didn't have enough exhibits to fill the convention hall this year. It now shares the space with the Japan Mobility Show, signaling also the vanishing division between tech and autos, with many Japanese component makers supporting the likes of Honda Motor Co. and Tesla Inc.

My quest for consumer-facing products brought me to Fujitsu Ltd.'s booth, where I analyzed my basketball free throws using AI. I also marveled at an antibacterial  T-shirt made of electric fibers that capacitor maker Murata Manufacturing Co. (another Apple supplier) showed off. Those were fun, but I felt a touch of sadness as they made me feel the diminished lineup of consumer products even more.

From TVs to Internet of Things to mobility, the focus of Japanese tech has shifted over the past decade and a half. With TVs in particular, the country's manufacturers ceded leadership first to South Korea's Samsung Electronics Co. and LG Electronics Inc. and then to Chinese makers. Japanese cellphones flourished within the country's own ecosystem, but evolved in a completely different direction from smartphones in the US.

Now, made-in-Japan electronics hold little sway for consumers even in their home country, where companies have downsized TV and home appliance divisions. Toshiba Corp., which developed the world's first notebook PCs and home-use inverter air conditioners, did not command a companywide booth at CEATEC this year, although unit Toshiba Electronic Devices & Storage Corp. had a tiny space in the semiconductor exhibition corner.

Innovation is still here. Panasonic's perovskite cells are cheaper and lighter than silicon solar cells, and its key raw material, iodine, is abundant in Japan. From silicon wafers to chemicals to robotics, Japan remains the top supplier of key materials and equipment, helping the likes of Apple, Nvidia Corp. and Taiwan Semiconductor Manufacturing Co. earn hefty margins.

But the days of Japanese electronics brands commanding the world's attention may now be over — unless you're looking for a rice cooker.

The big story

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