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Mass market adoption eludes 3G iPhone in Japan

The 3G iPhone may be headed towards failure in Japan according to communications sector senior analyst Inui Makio who works for financial services firm UBS. In an article on Japanese tech site ItMedia +D, Inui points out all of the reasons why the 3G iPhone may have lost momentum in Japan.

The 3G iPhone, which was projected to sell one million units in Japan, appears to have only sold 200,000 units at the most. Both Apple and Softbank continue to keep actual sales figures a closely guarded secret. Inui’s initial estimates put yearend sales figures at 350,000, but that figure appears unreachable at the current sales rate. Although it has only been a short period Softbank has already adjusted 3G iPhone pricing plans lower in an attempt to boost sales.

The lack of features found in most Japanese cell phones appear to be holding back the iPhone from succeeding in Japan. The 3G iPhone is not able to use pictograms in text messages and emails. This may be a show stopper for the average user as text messaging is far more prevalent then voice calls due to the high cost charged per minute. The ability to convey a message with a single image is significantly faster than typing out the entire word.

Unlike most Japanese cell phones, the 3G iPhone cannot be used as a substitute wallet using Felica technology. Also, the 3G iPhone cannot take advantage of the 1Seg mobile television service available on some Japanese cell phones. These factors appear to be limiting 3G iPhone adopters to fans of apple products and not the critical mass market.

According to Inui, the fact the 3G iPhone was not tailored to the Japanese market is the primary factor limiting its current success. Unlike the West where cell phone use was typically limited to text messages and voice calls, the ability to access the internet and listen to music using a cell phone was not a new feature for the Japanese market.

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not surprise at all
By amdwilliam1985 on 9/5/2008 1:30:21 PM , Rating: 5
I'm not surprise at all, comparing to all the other high-end cell phones offered in Japan, iphone is more like a baby toy to them. The Japanese got like 5 years phone technology ahead of the rest of the world. So what's new for us, might not be new to them.




RE: not surprise at all
By staradderdragoon on 9/5/2008 1:43:15 PM , Rating: 3
What did Apple expect? Japan has had 3G for more than the last 3 years. If I am correct, Japan's already on 3.5G going onto 4G. my K800i which I've had for over 2 years, though not a touchscreen phone, has more 3G capabilities than the iPhone does with video conferencing and a GOOD camera(in phone standards) for sending photos. The US could never make a phone that would satisfy Japan's mobile standards. One of the flaws of having a limited number of carriers. They'll continue making crappy phones like the Razr and people will still buy them.


RE: not surprise at all
By mcnabney on 9/5/2008 2:15:18 PM , Rating: 5
You do know that the US wireless carriers do not now, nor have they ever, designed and manufactured a phone?

Since American's only seem to want free or cheap (excluding Apple fans who will throw money at anything with logo) the domestic carriers have no incentives to offer more expensive devices to only see them sit on the shelves.


RE: not surprise at all
By staradderdragoon on 9/5/2008 3:17:49 PM , Rating: 2
i never said that the carriers manufacture them. i was implying that the limited number of carriers we have limit the number of services they provide. The carriers have no incentive to introduce new services. The average consumer is unaware of these possibilities so they're not going to want what they dont know exist. So of course Americans are only going to want cheap phones. Why would i want to pay 400 bucks for a phone in which I cant use half of the capabilities cause the carriers dont support them? or the fact that carriers charge obscenely high prices for plans?


RE: not surprise at all
By shock66 on 9/5/2008 5:10:05 PM , Rating: 4
I'd like to point out that Japan only has three "major" carriers: Softbank, AU, and DoCoMo. There are others, but I think the number of carriers is roughly equivalent to the craptacular trinity of VZW, AT&T, and TMobile (plus some others).

I can't say I'm an expert but I always felt that the only reason we have crappy phones in the States is that most people don't know that there's better, and don't care. People were blissfully unaware that our phones (and networks) are absolute crap until the iPhone showed up, and they just gobble it up because they think that's the best a phone can get.

Living in Japan forever changes your views on phones and service; I can't go to a store here without wanting to flush every POS phone there.


RE: not surprise at all
By bobsmith1492 on 9/5/2008 6:25:07 PM , Rating: 1
Also some people don't like phones that much.

I'm stereotyping but it seems Oriental people talk a lot more than many Americans - they're more social so phones are more important.

Me, I have one in case of emergencies but I don't use it more than 3-4 times a week so I don't care as long as it's cheap and I can talk when I need to which it does just fine.


RE: not surprise at all
By copperdog on 9/10/2008 10:32:23 AM , Rating: 2
Yes, you are stereotyping.


RE: not surprise at all
By Schadenfroh on 9/5/2008 3:47:11 PM , Rating: 2
That pretty much describes me, I am using the same phone that my provider gave me for free when I threatened to drop right before they phased out the old analog phones. I hate cell phones, but they are handy for certain situations.


RE: not surprise at all
By zolo111 on 9/6/2008 12:09:08 PM , Rating: 3
quote:
The US could never make a phone that would satisfy Japan's mobile standards


I guess the same should apply to cars & consoles.


RE: not surprise at all
By Smartless on 9/5/2008 3:22:20 PM , Rating: 4
Yeah. Correct me if I'm wrong but isn't Japan where the test the latest and greatest products and when it does well there they bring it here. That might be the old way of doing things but it was always seemed that way. Brings me back to my favorite quote from Black Hawk Down... "We just lost the initiative." about 20 years ago.


RE: not surprise at all
By silversound on 9/5/2008 6:37:19 PM , Rating: 2
Actually America cellphones and companys has been closer with the technology in Japan. Remember when Japanese already got 3G while most Americans still using the no music big cellphone years back? Maybe 2 years slower, not 5 years...


RE: not surprise at all
By Chocobollz on 9/7/2008 5:36:23 AM , Rating: 2
Yeah, and we here in Indonesia already have 3G in like 3 or 4 years ago? (IIRC) And not to mention that we already in transition to 7.2 Mbps HSDPA network..


This article is pretty much on point
By amanojaku on 9/5/08, Rating: 0
RE: This article is pretty much on point
By TheDoc9 on 9/5/2008 2:23:34 PM , Rating: 3
For some reason I don't think of Lambo when I see the iphone. Maybe a BMW 3 series, and how many of those do you see in Japan.


RE: This article is pretty much on point
By amanojaku on 9/5/2008 4:10:08 PM , Rating: 4
I didn't mean the iPhone is a high-performance device. That's why I said "on display" and not "on the road." When I made the comparison I meant:

1) Overpriced
2) Under-featured
3) Useful only for attracting ditsy, hot girls


RE: This article is pretty much on point
By Jedi2155 on 9/5/2008 11:11:08 PM , Rating: 2
Since I don't really use my phone features much...I'll pay for it to get those ditsy hot girls :).

I'm sure many of us nerds would as well!


By Chocobollz on 9/7/2008 5:31:08 AM , Rating: 2
I'm not coming with you :-)


RE: This article is pretty much on point
By LordanSS on 9/5/2008 6:58:50 PM , Rating: 2
Japs? Lambo? Pffft...

Japs have these... =)

http://www.youtube.com/watch?v=--_ds4fBR5E


By mikeblas on 9/6/2008 10:09:21 PM , Rating: 2
Where's the "report post" button?


By chick0n on 9/5/2008 4:03:08 PM , Rating: 2
ROFL ? Lambo = iPhone?

epic failed.

iPhone is more like a Ford Taurus, other phones in the US market are like Kia Rio.

Forget about Japan, even Phones in other market are like Lambo to the US. Whats funny is that Samsung had this USB stick thing phone that flips Around & plays MP3 was released in Asia market like 3-4 yrs ago, and it just came out couple months ago in the US market and ppl think its "hot", when I told them "that piece of shit came out like 3-4 yrs ago in Asia Market" they were shock and thought that I was lying.

then I pull my w960 to them and I told them this phone was released like 2 years ago, they like oh shit really? I thought iPhone is the only phone that has touch screen ? ROFL !!!


Since when.
By jgvandemeer on 9/5/2008 1:30:18 PM , Rating: 2
Since when is 350,000 units a failure? Underperforming from expectations maybe, but a "failure"?




RE: Since when.