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In some ways, Wall Street should be surprised that it did not happen sooner. Apple (NASDAQ: AAPL) is talking to cellular carriers about launching the iPhone in Japan. In the country that created the Walkman and PlayStation, it would seem only logical that a tech gadget like the iPhone would be a huge success.
Japan is known for its obsession with cellphones. It is a large market for text applications and ringtones.
The Wall Street Journal writes that Apple is in talks with NTT DoCoMo (NYSE: DCM), the largest carrier in Japan, and Softbank. The Japanese market has "nearly 100 million mobile-phone users who buy new phones every two years on average. Japanese consumers are also already used to shelling out hundreds of dollars for expensive phones with advanced capabilities such as digital television, camera and music," according to the paper.
It would not be far-fetched to think that Apple could sell 5 million iPhones in Japan within a year or two of the launch. If deals in the U.S. and Europe are any indication, the big U.S. consumer electronics company could get as much as $400 for each handset and a piece of the calling plan revenue from its local carrier.
The biggest drawback to the current iPhone, especially in a market like Japan, is that it is not a 3G device and cannot take advantage of the fastest networks yet. Rumors are that a 3G iPhone will debut in the first half of 2008.
If Jobs & Co. have made any real mistake in launching the iPhone, it is that it is too slow to take advantage of many of the wireless world's most advanced, high-speed technologies. In Japan, it will be a must.
Douglas A. McIntyre is an editor at 247wallst.com
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Reader Comments (Page 1 of 1)
12-18-2007 @ 4:54PM
Dave said...
It does seem like there would be a huge market in Japan for the iPhone. Seems like a great decision by Jobs & Co.
http://www.davesjoint.com
12-18-2007 @ 8:22PM
Eric said...
As much as I love the iPhone, compared to some Japanese and Korean phones, it's nothing.
Also consider that Japan is almost entirely CDMA, so the current GSM phone won't work well - people roaming with a US phone in Japan aren't getting the best reception.