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Exploring Apple’s Shrewd iPhone Strategy in Japan
Wednesday, June 4th, 2008 at 4:00 PM - by .(JavaScript must be enabled to view this email address)
On Wednesday, SoftBank announced that it would be carrying the Apple iPhone in Japan. However, for SoftBank -- Japan’s third largest mobile phone carrier -- what seems like a coup for them could really be a ploy by Apple to get DoCoMo on board, according to Business Week on Thursday.
SoftBank’s deal with Apple will bring added prestige and help it compete with Japan’s number one carrier, DoCoMo. But the statement didn’t say anything about exclusivity, and Apple has been moving away from exclusive arrangements. For example, both Vodaphone and Telecom Italia have the rights to sell the iPhone in Italy.
Some analysts believe that the SoftBank announcement reflects a shrewd Apple ploy: work with the number three carrier to excite them about having a competitive edge they will obtain over the larger carriers. In turn, that will panic DoCoMo into agreeing to Apple’s terms.
SoftBank has nearly 19 million subscribers while DoCoMo has about 54 million. However, DoCoMo’s revenues have been falling, and Apple’s awareness of that could part a part in its strategy.
The potential problems are cultural and technical. DoCoMo, in its pride, may not cave to the pressure. Also, mobile phones in Japan are more advanced than those in the U.S., and the iPhone doesn’t compete as well with current smartphones in Japan that boast Web browsers, high end cameras. bar code readers and credit card payment systems.
Makio Inui, managing director and a telecom analyst for UBS in Toyko has his doubts about the appeal of the iPhone and thinks it will only sell, tops, a half million units. "It’s not going to move the needle in this market," he said.
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