Apple Japan: Looking Foward
Ok. Anyone who knows anything about Apple in Japan (hi Bergermeister) knows that they have serious problems right now, but have a legacy of fairly good operations and most of the problems can be turned around fairly easily.
I'll go through stuff off the top of my head, anybody else free to jump in.
Advertising. The Get A Mac ads are ok, but not great. The best recommandation I've seen would probably be this guys over at Information Architects Japan. Either way they need a bigger campaign with more knowledge of the local market.
iTunes. It owns the download market to computers (60% back in November '05), but a huge percentage of digital music in Japan is downloaded to mobile phones through operator-tied services. The obvious thing to do would be to strike a deal with one of the three operators[1] for exclusive iPhone models but offer the iTunes Store as the music store for all that operators mobile phones. This increases brand awareness of Apple, and expands iTunes without really changing their model of iTunes/iPod anywhere else. I admit that this is iffy, but music phones are much more popular in Japan then elsewhere. Alternatively they could just tie iTunes to the iPhone and give the operator a cut of the profits for not using their music store.
iPhone. It needs 3G, probably UMTS given Europe's standard. The quad-band GSM would fit in better with SoftBank Mobile[2] as NTT DoCoMo phones remain UMTS/WCDMA only so far but DoCoMo has said they plan to add GSM to their phones. Smaller/lighter is always good but for a smart-phone style device they're good (any iPhone nano model would have to be freakin' tiny though: please see the N703iμ and P703iμ).
Notebooks. Apple desperately needs a subnotebook for the Asian market. The 12" iBook/PB were on the big side and the 13" MacBook is even larger. Look at Sony's tiny models for what Apple needs to do to compete.
Awareness. Advertising, Macworld Tokyo (which was hugely popular, back in the day), more Apple stores, better Apple reseller network, a superior knowledge of the local market.
TV tuners for iMac and other models. The limited space in Japan compels computers to also integrate to or be TVs. Heck you can get TV tuners on mobile phones over there.
More stuff I'm probably missing. Jump in and discuss, please
[1] NTT DoCoMo would be best as it has the best UMTS network and is the largest. SoftBank Mobile is quite a bit smaller, Au/KDDI uses CDMA EV-DO instead of UMTS like the other two and therefore 3G wouldn't work with Europe which I assume is important in keeping the number of iPhone models down.
[2] SoftBank Mobile phones have tri-band GSM for Global Roaming and that's the reason you can buy a couple of their phone unlocked and use them in North America/Europe. NTT DoCoMo phones lack GSM so you could only use them (if, and that's a big if, you can get one unlocked) on 2100 MHz UMTS networks which limits you to parts of Europe and Asia.
I'll go through stuff off the top of my head, anybody else free to jump in.
Advertising. The Get A Mac ads are ok, but not great. The best recommandation I've seen would probably be this guys over at Information Architects Japan. Either way they need a bigger campaign with more knowledge of the local market.
iTunes. It owns the download market to computers (60% back in November '05), but a huge percentage of digital music in Japan is downloaded to mobile phones through operator-tied services. The obvious thing to do would be to strike a deal with one of the three operators[1] for exclusive iPhone models but offer the iTunes Store as the music store for all that operators mobile phones. This increases brand awareness of Apple, and expands iTunes without really changing their model of iTunes/iPod anywhere else. I admit that this is iffy, but music phones are much more popular in Japan then elsewhere. Alternatively they could just tie iTunes to the iPhone and give the operator a cut of the profits for not using their music store.
iPhone. It needs 3G, probably UMTS given Europe's standard. The quad-band GSM would fit in better with SoftBank Mobile[2] as NTT DoCoMo phones remain UMTS/WCDMA only so far but DoCoMo has said they plan to add GSM to their phones. Smaller/lighter is always good but for a smart-phone style device they're good (any iPhone nano model would have to be freakin' tiny though: please see the N703iμ and P703iμ).
Notebooks. Apple desperately needs a subnotebook for the Asian market. The 12" iBook/PB were on the big side and the 13" MacBook is even larger. Look at Sony's tiny models for what Apple needs to do to compete.
Awareness. Advertising, Macworld Tokyo (which was hugely popular, back in the day), more Apple stores, better Apple reseller network, a superior knowledge of the local market.
TV tuners for iMac and other models. The limited space in Japan compels computers to also integrate to or be TVs. Heck you can get TV tuners on mobile phones over there.
More stuff I'm probably missing. Jump in and discuss, please
[1] NTT DoCoMo would be best as it has the best UMTS network and is the largest. SoftBank Mobile is quite a bit smaller, Au/KDDI uses CDMA EV-DO instead of UMTS like the other two and therefore 3G wouldn't work with Europe which I assume is important in keeping the number of iPhone models down.
[2] SoftBank Mobile phones have tri-band GSM for Global Roaming and that's the reason you can buy a couple of their phone unlocked and use them in North America/Europe. NTT DoCoMo phones lack GSM so you could only use them (if, and that's a big if, you can get one unlocked) on 2100 MHz UMTS networks which limits you to parts of Europe and Asia.
Comments
8)
I'm at work so I'll get back to this a little later.
Also, any data on how much desktops and portables Apple has been selling in Japan? I can then integrate that into the desktops and laptop unit sales figures/chart I have...
Advertising - I agree on the ads; they are OK, but not great and need to better understand the culture. Japanese TV commercials are fantastic, so Apple needs to come up to the bar on this one. The iPod ads seem to be prevelent up in the major cities (I live in Booneyville) and get a nice reception.
Another element of advertising that I have touched on before is in-store advertising on the machines themselves. The local computer shop has several Macs that sit quietly all day; customers look at them with interest (especially as they sit proudly beside the well-known iPods), but tend to move over to the other brands which all have nice promos running all day. The staff at the shops tend not to know much about Macs, and by the time a customer has walked past the display, basically interest is over. They need an interactive demo that would allow the user to move through to sections of interest to him/her and then maybe even try it out for themselves.
Sub-notebook
Without a very good sub-notebook, Apple has no chance of entering the business market in Japan. Period. Business people oftten travel (and work) on very crowed trains where a MacBook is not an option (I've tried and failed, thus the reason I still have a Sony Clie running) and many meetings take place around fairly small, low tables that are crammed with tea cups and snacks, as per etiquette. The computer has to be real small, light, and have video out and a brilliant screen (notebooks here had drop-dead gorgeous screens three years ago, long before the glossies came to Apple). Price is not that much of a problem, if it is top-notch. They would love a flash-based machine.
Desktops - Even here, space is a premium, and no TV inside means lots of lost customers. The iMacs are lovely and lots of eopel are attracted to them. The addition of TV capability, especially with recording, would make it an instant smash hit.
iPhone - I know I raved about it; it is an awesome device and, for the US, futuristic. It is rather main-stream here (just the good in several phones thrown together with a touch screen, a local seller told me) and no 3G will limit sales, as will no direct music downloads (depending on carrier). The Japanese also like games and now the rage is credit phones that allow you to pay for services at convenience stores and other places using your phone: just hold it next to the sensor and the transaction takes place. A better camera is also a good idea; the newest ones here now have 5 mega pixels with quality lenses and can record and send video.
Round 1
iPhone - I know I raved about it; it is an awesome device and, for the US, futuristic. It is rather main-stream here (just the good in several phones thrown together with a touch screen, a local seller told me) and no 3G will limit sales, as will no direct music downloads (depending on carrier). The Japanese also like games and now the rage is credit phones that allow you to pay for services at convenience stores and other places using your phone: just hold it next to the sensor and the transaction takes place. A better camera is also a good idea; the newest ones here now have 5 mega pixels with quality lenses and can record and send video.
Damn. I forgot about the lovely use the phone to pay for transactions thing. I agree with that and a better camera—there's some very good work out on making decent cameras despite the limitations inherent in lens size for a mobile phone.
Oh I'd argue that releasing the iPhone without 3G/direct music downloads will sink it without a trace in Japan. I have enough confidence in Apple that the version Europe/Asia gets will be Revision B with 3G (as no 3G in the European market will hurt it a lot). Brought back to the US/Canada with Cingular/Rogers UMTS bands instead of the world band in early 2008, call it Revision B/North America.
Whoops. I forgot that Australia is using both North American (850/1900 MHz, plus a slightly different 2100 MHz for T-Mobile) and the world 2100 MHz UMTS band. Sigh. Maybe Apple will make a tri-band UMTS iPhone, but I can't see how given the circuitry size requirements.
Ok. I came back to this because I thought of something. Location services are picking a lot of steam in Japan and I think this is one trend Apple could both easily and heavily get behind. Perhaps a deal with i-mode (the largest ISP in Japan is a mobile phone ISP, and they're nearly as big as AOL) because they're in a bunch of countries and—I think—have location services in Japan.
Pull out your iPhone and hit the location services button and maybe browse for a coffee shop near you (the Starbucks in the Keynote without having to put in your location), or find the closest couple of restaurants and look at their menu…
Location services are going to be big and I think Apple could and should embrace them. Would just require a fairly small GPS chip combined with standard e911-type tower triangulation for indoors.
In Australia, I don't think any carrier is using 1900mhz UMTS. It does use 2100 and 850....
I was wrong, you are spot-on. Telstra Australia is the bloody culprit:
They list their wireless broadband [3G] as three variants depending on location and connection method:
HSDPA/UMTS: 850/2100 MHz \t
HSDPA/UMTS: 850/1900/2100 MHz
HSDPA/UMTS: 850/2100 MHz
http://my.bigpond.com/internetplans/...ireless/about/
There's that 1900mhz in there.
Wikipedia says:
"In the United States, UMTS is currently offered by Cingular on 850MHz and 1900MHz, due to the limitations of the spectrum available to them at the time they launched UMTS service. T-Mobile will be rolling out UMTS on the 2100/1700MHz frequencies in mid 2007. Because of the frequencies used, early models of UMTS phones designated for the US will likely not be operable overseas and vice versa; other standards, notably GSM, have faced similar problems, an issue dealt with by the adoption of multi-band phones. Most UMTS licensees seem to consider ubiquitous, transparent global roaming an important issue."
http://en.wikipedia.org/wiki/Univers...cations_System
Messyness:
http://www.geekzone.co.nz/Jama/585
"As you may or may not be aware Telstra are closing down their CDMA network and instead have opted for a UMTS 850 network.
The rational behind the decision is this:
1. They already have a UMTS network through their 50% ownership of '3'
2. UMTS is part of the GSM (backward compatible) family and Telstra have an extensive GSM 900 network
3. Telstra already own the 850MHz spectrum which is a left over from the AMPS days and is currently used for CDMA
4. 850MHz offers superior coverage over 2100MHz so it is well suited to the 'bush' or rural Australia. It is something like a 60% reduction in the number of cell sites required for a UMTS 850 network when compared to UMTS 2100 for the same coverage footprint.
Moving to UMTS 850 means that their cellular technology is all brought under the same technology roof which should ultimately save some money. A great idea but there are some major challenges.
So far the only major carrier to adopt UMTS 850 is Cingular in the USA. It is expected that Rogers (Canada) will go this way but so far that is it for confirmed or rumoured deployments.
According to the 3GPP there are 9 bands approved for UMTS networks:
1. UMTS 2100
2. UMTS 1900
3. UMTS 1800
4. UMTS 1700/2100
5. UMTS 850
6. UMTS 800
7. UMTS 2600
8. UMTS 900
9. UMTS 1700
Geographically we have: [edit note: Accuracy of this??]
Japan - UMTS 2100/1700 (current), UMTS 850 (they could)
Europe/China - UMTS 2100 (current), UMTS 1800/900 (might do)
North America - UMTS 1900/850 (current), UMTS 1700/2100 (possible) [edit note: T-Mobile will use this]
UMTS 2600 - no one seems that keen
Ok - this is where 3G roaming gets complicated:
Telstra will end up being UMTS 850 and 2100 along with GSM 900. On the other hand Cingular is UMTS 850 and 1900 plus GSM 900 (I guess).
For a Telstra customer to roam to Cingular on 3G they would need a UMTS 850/1900/2100 handset otherwise it will be GSM 900 only.
So far there are no UMTS 850/1900/2100 handsets.
In Australia it gets worse:
A rural customer will have a UMTS 850/2100 GSM 900 phone. A city slicker currently has either:
A. Existing Telstra customer - quad band GSM
B. Existing '3' (Telstra/Hutch) customer - UMTS 2100/GSM 900
When an existing '3' customer is out of the metro areas they are on GSM 900. There is no 3G choice. When they travel to the 'country' they are lucky to get anything.
An existing Telstra GSM customer has a better chance with seamless GSM but still the 'country' is an issue."
UMTS 2100mhz is the worldwide standard that Three, Vodafone and Optus will be using for 3G in Australia in 2008. Only Telstra, unfortunately will be doing 850/1900/2100mhz due to range/coverage/etc. claimed reasons.
I think to start off quad-band GSM and EDGE is a decent start for the iPhone. Given the target consumer range, I think Oct-Dec 2007 in North America and Europe will be quad-band GSM and EDGE 1st gen iPhone. No 3G for Europe until 2nd gen of iPhone. Though this is a conservative view.
Nonetheless, as you point out ElectricMonk, a transparent global roaming 3G phone would have to unvolve UMTS 850, 1700/2100, 1900 and the worldwide 2100mhz.
So that's Quad-band 2.xG GSM with EDGE, and Quad-band 3G UMTS (!!!) -- along with 802.11[G] wifi.
Heavy. Power on, Apple iPhone, Power On...! The iPhone is no Nokia, SE, or Moto -killer, but it will carve out it's niche, and with massive profit potential despite being "niche".
The phone also needs to have a document viewer as the business guys (and now most office staff) like to review things during their commutes.
Originally at http://b3ta.hnldesign.nl/index.php?list=4
The Apple sub-notebook will have to compete with the new one from Sony:
http://www.vaio.sony.co.jp/Products/UX2/gallery.html
I have the predecessor, the CLie PEG UX and it was a fabulous machine (still is: I use it pretty regularly) and I can only imagine this thing is really nice.
It has built-in TV, recording, etc, etc. If it ran OS X, I would buy one in a heartbeat. They will likely sell quite well in the major cities where the train commute is more like a group squeeze than a train ride.
There is a flash-only model that is 800 bucks more than the HD version.
I was wrong, you are spot-on. Telstra Australia is the bloody culprit:
Geographically we have: [edit note: Accuracy of this??]
Japan - UMTS 2100/1700 (current), UMTS 850 (they could)
Europe/China - UMTS 2100 (current), UMTS 1800/900 (might do)
North America - UMTS 1900/850 (current), UMTS 1700/2100 (possible) [edit note: T-Mobile will use this]
UMTS 2600 - no one seems that keen
Yeah this issue is just messed right up. We were going to get away with single band UMTS coverage (probably adding either 850 MHz or 900 MHz for rural areas) but no? The FCC (and Rogers in Canada) and the Australians just had to screw things up.
To clarify your list a little:
UMTS bands & operators
North America
Cingular 850/1900
T-Mobile 2100 (note, different from world 2100)/1700
Rogers 850/1900
Europe
2100 all
Expansion possible to 900/1800 as GSM networks go dark.
Asia
2100 all
Expansion possible to 900/1800 as GSM networks go dark.
Japan
2100 all, 850 on NTT DoCoMo FOMA Plus.
Australia
850/1900/2100 (idiots). Although 850 Mhz may overlap all other coverage.
The 1700 MHz UMTS in Japan isn't really used.
Therefore for transparent global roaming you'd need 2100 MHz and 850 MHz. 1900 Mhz would be nice as well for North America. We'll just forgot about T-Mobile.
iPhone Europe - hopefully adds 2100 MHz UMTS
iPhone Asia - 2100 MHz UMTS will be required if they expect it to sell in Japan. 850 MHz would be nice for Australia and FOMA Plus (if NTT DoCoMo gets the iPhone).
iPhone North America (Revision
I discount UMTS expansion for now because that's a whole 'nother can of worms?
@Bergermeister
God that's ugly. I can't imagine Apple making something like that, but I can see why it would be useful? The old Sony X505 is a more likely candidate.
Although? What if you had the screen able to slide up like those for use on the train, and it keeps sliding up into the standard screen position? Kinda complicated, though.
I mainly posted it as a benchmark: it has the specs, it is the right size, it is flash-based.
Personally, I wouldn't mind a mini clamshell portable if it did everything right. Again, there are tons and tons of similar items (electronic dictionaries) in Japan; these are getting rather sophisticated these days: headphones, styluses, flash memory, downloadable software updates. All for 200 bucks and they fit into your shirt pocket.
...the Australians just had to screw things up...
Heh. The 850/1900/2100 thing is because Telstra, just before being fully privatised sometime this/last(?) year, was mandated by the government to provide high-level widespread 2G and 3G coverage. Among other reasons to cover the rural areas.
TV tuners for iMac and other models. The limited space in Japan compels computers to also integrate to or be TVs. Heck you can get TV tuners on mobile phones over there.
There are loads of TV tuner out there. The problem is 99.9 of those dont support Mac and OSX never really had a framework for it anyway. The problem could be easily fixed if more developer work on itele http://www.defyne.org/dvb/ .
Or Steve jobs suddenly decide the TV is need on mac
There are loads of TV tuner out there. The problem is 99.9 of those dont support Mac and OSX never really had a framework for it anyway. The problem could be easily fixed if more developer work on itele http://www.defyne.org/dvb/ .
Or Steve jobs suddenly decide the TV is need on mac
http://www.elgato.com/ has always had solid solutions for the Mac. A closer partnership might work for Apple Inc in Japan (more elegant, non-dongle solutions).......
http://www.elgato.com/ has always had solid solutions for the Mac. A closer partnership might work for Apple Inc in Japan (more elegant, non-dongle solutions).......
The problem is that they are 2 time more expensive then PC version ><
The challenge in SouthEastAsia is pretty much cost, because all Apple gear is sold at the USD-converted equivalent. On top of that, people earn maybe 1/5th to 1/20th of the average American wage in these countries. Anyways, since cost was mentioned re: Japan...
The rest of SEAsia I'd agree with you though, especially once its been through the USD conversion. I'm in Canada where we typically get marginally better than exchange rate prices in some areas like iTunes, and a fair conversion elsewhere.