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I think Japan has - at least to some extent - lost the cutting edge tech lead it used to have. The top 3 cell phones in Japan now are the iPhone (16G), the iPhone (32G), and an HTC Android phone. The iPod pretty much dominated the portable music player market for years - it has lost some marketshare now, but that seems to be due to people buying iPhones instead.
Japan still has leading edge companies like Panasonic and Toshiba...but they are getting squeezed from Korea, Taiwan, and even China. DVD players have become a $30 commodity, and even Blu-Ray players are moving in that direction, without having been very successful at the high end.
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