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WSJ: After Good Start, iPhone Fever Slows in Japan

Tuesday, September 16th, 2008 at 3:50 PM - by

The iPhone was eagerly anticipated in Japan, and there was considerable buzz at launch. However, after an initial frenzy, after two months, sales have fallen to a third of what they were, according to the Wall Street Journal on Monday.

Apple's partnership with Softbank Corp got off to a good start with customers lined up in advance at stores for the July 11 launch. Many locations were immediately sold out.

Lately, however, despite ample supplies, interest has waned. The explanation by analysts is the relatively high price and the fact that the Japanese are accustomed to having access to the most sophisticated mobile phones on the planet.

Sharp, not Nokia, is the market share leader in Japan with about 25 percent of shipments.

While Apple and Softbank sold 200,000 iPhones in the first two months, demand has been falling steadily. Some personal use issues have come into play -- the iPhone lacks certain features the Japanese people are accustomed to, such as special clip art for e-mails and the ability to use their phones as debit cards. Other features, like the App Store seem alien to them.

"Japanese users don't know what to do with an iPhone," Takuro Hiraoka, an analyst for GfK Marketing Services said. "Sales could grow if Apple provides specific examples of how it can be used."

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A guest said: (hide)

Tue Sep 16, 2008 5:44 pm

I was in Japan recently and saw just how pervasive the mobile phone is in Japanese society. so this comes as no surprise. What I noticed at the Harajuku Softbank store on July 20 was a lot of non-Japanese customers lined up for it. Perhaps this explains the fall-off - that it was immensely popular with expats, which is a market now saturated.

coaten

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A guest said: (hide)

Tue Sep 16, 2008 9:00 pm

I have an iPhone here and use it for business... But when I walked into the SoftBank store to sign up for it, I was blown away by the fact that the iPhone cost over $700 to buy... You either pay the full cost upfront or agree to monthly payments. Either way, its a hell of a lot more than the much cheaper $250 price tag that was floating around in the news...

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