Gizmodo today posted a rather interesting question about whether the iPhone will invade Japan, the country where handheld devices any bigger than a Hershey’s Kiss are shunned. Cell phones in Japan accomplish day-to-day tasks like paying for public transportation, buying a cup of coffee and picking up a newspaper by waving your phone at the counter. People in Japan refer to mobile phones more as “wallets and mobile media devices” combined, rather than just a “media device.”
Japan and China may be the most important markets Apple needs to capture as they globally expand with the iPhone. Launching the iPhone here in the states, where Apple is woven into the fabric of our culture, is not nearly as terrifying as launching into overseas “high-density, high-technology” regions where the Apple culture is not so ingrained. There’s no denying the sheer domination the iPod has worldwide, but the mobile phone industry is definitely a different game.
In response to Gizmodo’s question - “How will the iPhone sell in Japan?”:
The iPhone will demolish analyst predictions about sales. All this pre-emptive nervousness and hesitation that seems to be shuddering through the community is absolutely unjustified. iPhone sales will be very strong in Japan, not to mention further Apple’s strong, reputable brand identity into a very saturated market.
Apple’s WWDC (World Wide Developer Conference) kikcs off this Monday June 9th, with CEO Steve Jobs’ keynote speech. In the weeks leading up to this major annual Apple event, the entire industry, (especially the Apple-centric tech lovers like us) is buzzing about the release of the 3G iPhone as well as the iPhone SDK (Software Development Kit).
My belief in how the iPhone will perform in Japan is partially based on the device being such a mind-blowing platform for software development. As we’ve posted about before, venture capitalist firm KPCB has announced the $100 million “iFund” to support start-ups devoted solely to iPhone and iPod Touch development. The iPhone’s raw mobile power alone guarantees the device to be a complete smash-hit in foreign markets, if only because developers can develop ANY application they want or need.
The iPhone interface and user experience is light-years ahead of any other hand-held device in the world. The device has been so globally sought after, that a black market has been created to meet demand in countries where it is not yet legally offered. As an answer to this, Apple has been working on deals with carriers in 60+ countries in the past few months. (we’ve put together a complete map and list here) Although a small percentage of people in various markets and countries have been exposed to the iPhone, the percentage will sky-rocket once Apple runs its magical marketing campaigns worldwide.
With Apple being so secretive in the past few months, major news like new iPhone carrier deals do not go unnoticed. Surely Apple has established some standard contract models that they offer lower-tier carriers in other countries, and subsidizing may be a major part of these contracts. Apple is not a company to bend or budge for anything a small company is asking for, let alone meet a demand from a potential carrier that is just eager to get the iPhone into its specific market. Apple knows it has the hottest device released “EVER” (just ask them), and they know they can pick and choose carriers as they wish.
My prediction is for the iPhone to perform well beyond current nervous expectations in Japan. The country may seem like a “scary, over-populated, highly-critical, mobile-demanding” country, however Apple designed the iPhone specifically for this type of market. Currently, Apple has a fairly strong retail presence in Japan with 7 retail stores. When the 3G iPhone officially launches in Japan, the combination of Apple’s retail presence, genius ad-campaigns, endless mobile software possibilities and their hard-hitting marketing machine will make the new device a smash hit.
