SoftBank shows massive income growth behind demand for Apple's iPhone
Japanese telecommunications company SoftBank on Thursday reported a robust 29 percent year-over-year jump in net income for its mobile division, which the carrier attributes primarily to sales of Apple's iPhone.
SoftBank appears to be the main beneficiary of the iPhone's popularity in Japan, capturing 40 percent of the market for Apple's new flagship iPhone 5s and mid-range iPhone 5c, according to their quarter-ending financial statement. Revenue from the wireless segment totaled ?996 billion Japanese yen for the first half of 2013.
The carrier has led all Japanese wireless providers in subscriber additions for 57 of the 62 months since it began selling the iPhone in 2008, the report said, adding nearly 2 million subscribers in the first half of fiscal year 2013 alone. Rival KDDI's au unit added 1.34 million in the same period, while NTT DoCoMo lagged behind with just 240,000 additions.
SoftBank's recent meteoric rise has come at great expense to its chief rivals, though DoCoMo has been by far the hardest hit, gaining access to the iPhone two years after KDDI and five years after SoftBank. DoCoMo reported the worst monthly subscriber loss in its history last month, with more than 66,000 customers abandoning the carrier after DoCoMo's launch supply of the iPhone 5s and 5c ran out.
Apple's iPhone owns more than 30 percent of the Japanese smartphone market, and analysts expect its share could climb even higher with the recent addition of NTT DoCoMo as a partner.
The handset's "share could reach half of (all) smartphones" with DoCoMo coming on board, Gartner research analyst Atsuro Sato recently told Reuters.
SoftBank appears to be the main beneficiary of the iPhone's popularity in Japan, capturing 40 percent of the market for Apple's new flagship iPhone 5s and mid-range iPhone 5c, according to their quarter-ending financial statement. Revenue from the wireless segment totaled ?996 billion Japanese yen for the first half of 2013.
The carrier has led all Japanese wireless providers in subscriber additions for 57 of the 62 months since it began selling the iPhone in 2008, the report said, adding nearly 2 million subscribers in the first half of fiscal year 2013 alone. Rival KDDI's au unit added 1.34 million in the same period, while NTT DoCoMo lagged behind with just 240,000 additions.
SoftBank's recent meteoric rise has come at great expense to its chief rivals, though DoCoMo has been by far the hardest hit, gaining access to the iPhone two years after KDDI and five years after SoftBank. DoCoMo reported the worst monthly subscriber loss in its history last month, with more than 66,000 customers abandoning the carrier after DoCoMo's launch supply of the iPhone 5s and 5c ran out.
Apple's iPhone owns more than 30 percent of the Japanese smartphone market, and analysts expect its share could climb even higher with the recent addition of NTT DoCoMo as a partner.
The handset's "share could reach half of (all) smartphones" with DoCoMo coming on board, Gartner research analyst Atsuro Sato recently told Reuters.
Comments
The power of the iPhone cannot be denied
Yes! The iPhone is a deity that we all must fall down and worship!
BEING WITH WINNER MAKES YOU WINNER.
Ho boy how Docomo got it’s ass handed to it. The price you pay for absolutely wanting to stick your logo on a phone and preinstall software on devices...
Hope China Mobile takes notice.
Hope China Mobile takes notice.
I was just in China and used CM for my iPhone 5S so I could get reception in rural areas. Their service (both cellular and WiFi hotspots) is atrocious!!! Add to that they refuse to use international standards and use proprietary crap, I hope the Chinese people will start leaving them in droves and that Unicom and Telecom begin expanding their network coverage so that CM can get buried!
But....but...Android!
The Japanese and the Koreans don’t like each other at all (culturally, racially, historically) so I don’t see somebody like Samsung gaining any kind of foothold in Japan. The Japanese Android phones also don’t seem to be that popular.
/s
What BS. Everyone knows Android is winning. 85% global market share with 3 million device activations a day. Samsung smartphones outsold Apple iPhones by nearly a 3:1 margin last quarter with a 5:1 ratio expected next quarter. Apple as a company won't even be around in 2014 as Android products flood the market. Cheap is good. Pricey is bad. Japan iPhone sales are equal to selling to Long Island while Android has the whole continental U.S. in its pocket. Apple is doomed.
/s
Ok?
What do they do without a built in FM receiver, terrestrial TV and of all things... OMG!....NO NFC?!?!
I guess no Trains, Planes or Automobiles for these folks...don't forget your snacks.
/s
Radio watch.
…
RADIO WATCH!!!
Wonder if someone's going to get fired at DoCoMo for making the decision to hold out. It basically ruined the company's market lead.
Ok?
/s == sarcasm
No one gets fired in Japan. Especially at a (semi-former) government-owned corporation.
Yup. They just cover each other backside.
I read an article the other day about how the Russian telcos are beginning to regret their decision.
The Japanese and the Koreans don’t like each other at all (culturally, racially, historically) so I don’t see somebody like Samsung gaining any kind of foothold in Japan. The Japanese Android phones also don’t seem to be that popular.
Good insight. I agree with you. Spent most of the summer in China, Hong Kong, Japan and Taiwan and was surprised at the difference in the smartphone markets and general outlook. Japan is very U.S. friendly and the iPhone was wildly popular. The only other company who seemed to be well liked, unsurprisingly was Sony. In terms of their view on Koreans, the hatred is much more pronounced in terms of Koreans not liking Japanese, not so much the other way around.
In China, HK and Taiwan, a very different view. Apple was not popular and anti-US sentiment is higher. Generally, they like Korea but prefer their own brands. I suspect it's going to be impossible for Apple to get the same market share in greater China as they get in Japan, purely for cultural reasons.
Good insight. I agree with you. Spent most of the summer in China, Hong Kong, Japan and Taiwan and was surprised at the difference in the smartphone markets and general outlook. Japan is very U.S. friendly and the iPhone was wildly popular. The only other company who seemed to be well liked, unsurprisingly was Sony. In terms of their view on Koreans, the hatred though is much more pronounced in terms of Koreans not liking Japanese, not so much the other way around.
In China, HK and Taiwan, a very different view. Apple was not popular and anti-US sentiment is higher. Generally, they like Korea but prefer their own brands. I suspect it's going to be impossible for Apple to get the same market share in greater China as they get in Japan, purely for cultural reasons.
SACRILEGE!!!