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News
Exploring Apple’s Shrewd iPhone Strategy in Japan
Wednesday, June 4th, 2008 at 4:00 PM - by John Martellaro
On Wednesday, SoftBank announced that it would be carrying the Apple iPhone in Japan. However, for SoftBank -- Japans 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.
SoftBanks deal with Apple will bring added prestige and help it compete with Japans number one carrier, DoCoMo. But the statement didnt 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 Apples terms.
SoftBank has nearly 19 million subscribers while DoCoMo has about 54 million. However, DoCoMos revenues have been falling, and Apples 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 doesnt 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. "Its not going to move the needle in this market," he said.
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