DailyTech - iPhone Losing Momentum in Japan?

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Stephen Kamizuru (Blog) - August 12, 2008 6:03 AM

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15 comment(s) - last by BenMc.. on Aug 19 at 12:26 AM

Softbank adjusts data usage fees one month after launch.

The iPhone may be losing momentum in the Japanese market. Japan Corporate News reports one month since the release of the iPhone, Softbank Mobile, the handset's only seller in Japan, has revised data usage fees for the iPhone from an initial flat rate of 5,985 yen to a range from 1,695 yen to 5,985 yen depending on data usage. Earlier in the month Masayoshi Son, president of Softbank Mobile said he wanted to put the iPhone in the hands of people who did not buy it due to its high price. Michito Kimura, senior analyst at market research firm IDC Japan, says iPhone sales are unlikely to rise sharply. According to Japan Corporate News iPhone sales were projected to top one million units, but actual sales appear to fall short of that goal. Could slowing sales be what prompted Softbank to adjust pricing fees?

The iPhone is lacking features specific to the Japanese market which may be slowing its adoption. Features the iPhone lacks include the ability to pay for purchases using the phone called FeliCA, the ability to watch television on the phone using the 1Seg service, and the inability to text message using one hand which is standard practice in Japan.

In contrast to Softbank’s actions that appear to be an attempt to boost slowing sales, there is evidence the iPhone has had a strong positive effect on Softbank. According to an AppleInsider article Softbank led other providers in the country in new mobile phone subscriptions, garnering up to 215,400, more than half of the 391,500 new activations in Japan during the month of July. Softbank representatives credited the iPhone for the positive net growth. The growth appears to have come at the expense of rival provider KDDI.

Variables that favour the success of the iPhone include a web surfing experience no Japanese cell phone can match. Another factor is Apple products such as the iPod are already very popular in Japan ease of use and simplicity are major reasons why apple products continue to dominate music player market in Japan. These positive factors may very well carry over in to the cell phone market. Although Japanese cell phones include many features they also sport complex menus that are difficult to navigate and services that are impractical to use.

It remains to be seen whether Softbank’s new subscription growth is a temporary blip or a continuing trend. The fact Softbank is already moving to try and boost sales may indicate Softbank itself feels sales are not where they prefer them to be.

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Was gonna say

By FITCamaro on 8/12/2008 9:15:11 AM , Rating: 5

Why would the Japanese even want the iPhone. After seeing some Japanese phones two years ago, they've already got phones better than it.

RE: Was gonna say

By Saosin on 8/12/08, Rating: -1

RE: Was gonna say

By amanojaku on 8/12/2008 10:14:52 AM , Rating: 3

I agree with FIT. The iPhone is a waste of money if its only selling point is the interface. From what I've seen, few people use the iPhone in such a way that the cost is justified. Then again, most people who bought the iPhone did it for looks and/or status, so bullocks to them. The Japanese know electronics the way we know baseball; if the iPhone was that hot they'd be buying it.

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RE: Was gonna say

By DeepBlue1975 on 8/12/2008 11:31:24 AM , Rating: 2

No matter how good the interface is, a touchscreen only telephone is a deal breaker to many.

Besides, as I don't have any problems with "difficult" interfaces like nokia's...
So difficult that I need just the press of one or two buttons at the same time to do the things I need more often, like calling/texting my wife and coworkers, starting the camera to take really usable pictures (which no iphone can still say it's capable of), starting the media player, or the system file browser.

How much faster can the iphone be than pressing d-pad up to open my file manager, down for contacts, left for new text message, right for calendar, pen+1 for bluetooth on, pen+2 for bt off, pen+* to directly text my wife, or holding for 2 secs any key on the number pad to start calling any of my most used contacts, etc (yeah I made shortcuts for everything in my phone, I'm the kind of guy who prefers key shortcuts much better than navigating through lots, though nice looking menus)?

Besides, on my phone when I press a key, I know which key it is for sure, no need to look at the keypad.

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RE: Was gonna say

By BuffDaddySmurf on 8/12/08, Rating: -1

RE: Was gonna say

By FITCamaro on 8/12/2008 12:48:15 PM , Rating: 4

I prefer not to live on my phone and experience the real world.

And I'm far from a small guy and have an LG EnV. Have no trouble using the internal keyboard for text messages with its tiny buttons. So either you've got really fat hands or are clumsy.

I'd consider an iPhone if I could get one on the service of my choice (Verizon). I never said it was bad phone. I said I can see the Japanese not wanting it because they have far better phones with more features and have had them for a few years. Their phones have had GPS, internet connectivity, fingerprint sensors, RFID, multi-megapixel cameras, and more for a few years now. We're not as lucky in the states.

The biggest detractor for the iPhone to me is its completely touch interface. Touch interfaces get dirty. I already have to clean my current phone's screen regularly because of the oil from my skin gets on it. I wouldn't want to have to constantly clean off an iPhone's screen.

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RE: Was gonna say

By BuffDaddySmurf on 8/12/08, Rating: -1

RE: Was gonna say

By Oralen on 8/13/2008 6:09:19 AM , Rating: 3

Over there, hundreds of thousands of japanese are using their mobile to pay their subway tickets and their small purchases SEVERAL times a DAY.

The FeliCA system is doing great over there.

Those who are using it will NEVER go back to a phone who doesn't have it, period.

Apple need to add it if they want to succeed...

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RE: Was gonna say

By johnadams on 8/14/08, Rating: 0

RE: Was gonna say

By marco916 on 8/12/2008 7:19:29 PM , Rating: 1

Because the Japanese phones don't have the little Apple logo, Apple is just way too cool..

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RE: Was gonna say

By Richlet on 8/14/2008 9:43:54 AM , Rating: 2

quote:
Why would the Japanese even want the iPhone. After seeing some Japanese phones two years ago, they've already got phones better than it.

No kidding. Plus with all the technologies combined with their phones, they'd have to be idiots to buy into an iPhone.

Sidenote: Seems like the people talking about possibly why it's failing in Japan know something about technology and the country itself. The other half of the argument seems much less knowledgeable about either one.

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RE: Was gonna say

By jabber on 8/18/2008 6:30:43 AM , Rating: 2

Indeed most of the new phone tech/innovation (in terms of real life application) comes from Japan. What Japan has now will filter into the US a few years later.

They probably look at the iPhone like an old curio.

To most in Japan it would look like a brick to be honest.

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RE: Was gonna say

By DragonMaster0 on 8/15/2008 12:51:05 AM , Rating: 2

It's like trying, as a foreign company, to sell a 20Mbit Internet connection over there, they're not very open to exterior brands, and are already light years in advance over what we'd like to have..

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It was not 5985 yen

By drunkenmastermind on 8/14/2008 9:18:17 PM , Rating: 2

It was 7000. And very glad I did not get one.

Also Japanese are not all that "small" they come in all shapes and sizes these days. My ex girlfriend was 183cm tall, I am 181, just call me Micheal J Fox.

Get one of each.

By BenMc on 8/19/2008 12:26:01 AM , Rating: 2

I considered changing my cell phone (Sharp 813SH) to the iPhone when it came out, but in the end, just added the iPhone (with a new number) and kept my existing one. The reason I kept my existing phone is it doesn't have a camera, so I can take it inside with me when I visit customers. Also, the way Softbank's plans work, changing phones before you've had one 2 years eliminates the subsidy on the phone you change from.

Besides making phone calls, I used my Japanese cell phone occasionally to check the weather or train schedules, but it can't access normal web sites (there actually is a way if you have all day), the screen is small, and input via the number pad is cumbersome. While the Japanese phones have lots of features and some Japanese actually use some of those features, there are also many people who don't. My Japanese colleague has a phone with 1-seg (digital TV tuner), but never uses it because it drains the battery too fast.

My Japanese friends are curious about my iPhone and are generally impressed with it's capabilities. Google maps, the Safari browser and games that use the accelerometer always get some wows. The GPS is also cool. I use mine to listen to online radio (NPR, BBC via Tuner app), instant message (via Meebo.com on the Safari Browser), do some online shopping, view my work email (including most attachments), as a Japanese-English dictionary, to play an occasional game of CritterCrunch, and to watch news videos from MSN.com. I don't actually use it to make phone calls.

It's certainly not perfect and there are other phones that will work better for some people, but I think saying it is not as technologically advanced as the Japanese phones is incorrect. It depends on the intended uses.