iPhone helps keep Softbank competitive, profitable in Japan
Despite double-digit sales declines at rival NT DOCOMO and KDDI, Japan's Softbank, the exclusive carrier of the iPhone and third largest carrier in the country, continues to maintain the number one position in Japan for net new subscribers.
Softbank, posted a 9.7% year over year increase in its total number of subscribers for the most recent quarter ending in June 2009, along with improved handset sales during a particularly difficult sales climate.
Company president Masayoshi Son credited the allure of the iPhone, along with cost cutting measures, for the company's recession-defying results and its ability to attract customers away from other providers. Softbank has led mobile providers in net subscriber additions for the past two years.
While the Western media has celebrated the complexity and sophistication of Japan's smartphones, Son acknowledged that Japan's domestic handset manufacturers are struggling, in part due to being ghettoized by Japan's unique TDMA-based PDC standard in place for 2G mobile service. As the world converges upon UMTS as the 3G standard, Japanese phone makers will have a better opportunity to sell their phones outside of Japan, but they are already facing tough competition at home.
Japanese phone makers also face a carrier-dominated subsidy sales model similar to the US inside Japan, where subscribers are given expensive phones that appear to be free, and are then asked to pay huge phone bills to make up for it. In contrast, Softbank is selling the iPhone and its other handsets at more upfront rates, essentially marketing the phone using a 24 month installment plan.
In addition to the long term contracts that bind subscribers to their carriers, there are also fees involved with moving a phone number to another provider, something that US law forces carriers to do for free. Despite these barriers, Softbank continues to attract more net new subscribers and outperform its larger rivals in the Japanese market, something the advocates of more conventional Japanese phones are having a hard time explaining.
Softbank, posted a 9.7% year over year increase in its total number of subscribers for the most recent quarter ending in June 2009, along with improved handset sales during a particularly difficult sales climate.
Company president Masayoshi Son credited the allure of the iPhone, along with cost cutting measures, for the company's recession-defying results and its ability to attract customers away from other providers. Softbank has led mobile providers in net subscriber additions for the past two years.
While the Western media has celebrated the complexity and sophistication of Japan's smartphones, Son acknowledged that Japan's domestic handset manufacturers are struggling, in part due to being ghettoized by Japan's unique TDMA-based PDC standard in place for 2G mobile service. As the world converges upon UMTS as the 3G standard, Japanese phone makers will have a better opportunity to sell their phones outside of Japan, but they are already facing tough competition at home.
Japanese phone makers also face a carrier-dominated subsidy sales model similar to the US inside Japan, where subscribers are given expensive phones that appear to be free, and are then asked to pay huge phone bills to make up for it. In contrast, Softbank is selling the iPhone and its other handsets at more upfront rates, essentially marketing the phone using a 24 month installment plan.
In addition to the long term contracts that bind subscribers to their carriers, there are also fees involved with moving a phone number to another provider, something that US law forces carriers to do for free. Despite these barriers, Softbank continues to attract more net new subscribers and outperform its larger rivals in the Japanese market, something the advocates of more conventional Japanese phones are having a hard time explaining.
Comments
"Why The Japanese hate the iPhone"
<http://www.wired.com/gadgetlab/2009/02/why-the-iphone/>;
Sure Brian, what ever you say.....
Is the Japanese iPhone useable in the US? I am currently stationed in Japan and would like to get an iPhone through Softbank, but they tell me I won't be able to use in when I rotate back to the States.
With all the talk from Apple and others about makng iPhone compatable with 3G networks world-wide, this seems a bit odd. Is there something different with the Japanese 3G vs US 3G?
Thanks
Ok, I have a question for the folks on this forum who are much smarter than me.
Is the Japanese iPhone useable in the US? I am currently stationed in Japan and would like to get an iPhone through Softbank, but they tell me I won't be able to use in when I rotate back to the States.
With all the talk from Apple and others about makng iPhone compatable with 3G networks world-wide, this seems a bit odd. Is there something different with the Japanese 3G vs US 3G?
Thanks
The hardware is the same but when you buy from Softbank you are basically locked into a 2 year contract unless you pay a lot more money (don't have the exact 3GS price but it is in the 80,000 JPY range). Have no idea if ATT will sell you just a contract and SIM card if you bring your iPhone from Japan.
And to think it was only last February Brian Chen was writing about
"Why The Japanese hate the iPhone"
<http://www.wired.com/gadgetlab/2009/02/why-the-iphone/>;
Sure Brian, what ever you say.....
Good memory! I do remember that!...
In Japan of all places! This is a huge example of the iPhone's prowess!
And to think it was only last February Brian Chen was writing about
"Why The Japanese hate the iPhone"
<http://www.wired.com/gadgetlab/2009/02/why-the-iphone/>;
Sure Brian, what ever you say.....
Well heres some interesting stuff going back to 2007.
http://www.dannychoo.com/adp/eng/117...se+Phones.html
http://www.dannychoo.com/adp/eng/1522/iPhone+Japan.html
http://www.appleinsider.com/articles...ne_market.html
http://www.msnbc.msn.com/id/26329670/
And this last one is a refutation of Brian Chen's article. Very interesting and amusing considering that Hayashi was supposed to have told Brian some of the info that Brian's article is based upon, but it turns out to be NOT TRUE. Brian's article as seen now is not the same one that originally appeared.
This article is by the man himself, and a good, fun read:
http://blog.nobi.cc/2009/02/my-view-...i-hayashi.html
Neither Apple or SoftBank will confirm numbers for the 3GS.
So they are giving a 2 year phone away for Free and have resorted to lowering their monthly Bill.
For the 3GS they are breaking up the cost of the phone into your "Contract" for 2 years.
So for all the people that gave RIM/Blackberry shit for giving phones away to cook the numbers take a number and Kiss Rims Ass. Apple is copying they're sales model to attract new contracts.
http://www.getafreeiphone.org/2009/0...year-contract/
The reason for the upbeat sales is because Apple & Softbank have resorted to giving away the 8gb 3G for free with 2 year contract.
Neither Apple or SoftBank will confirm numbers for the 3GS.
So they are giving a 2 year phone away for Free and have resorted to lowering their monthly Bill.
For the 3GS they are breaking up the cost of the phone into your "Contract" for 2 years.
So for all the people that gave RIM/Blackberry shit for giving phones away to cook the numbers take a number and Kiss Rims Ass. Apple is copying they're sales model to attract new contracts.
http://www.getafreeiphone.org/2009/0...year-contract/
Also it's not that the Japanese hate the iPhone. It just not that desirable here. The Apple store and Softbank stores have people in there looking around and playing with the iPhone but there really aren't that many Japanese buying iPhones.
My best friend who is Japanese just bought a new Softbank phone because it has a 10MP camera. Don't get me started about MP. That's what he wanted so that's what he bought. I tried selling him on an iPhone but no go. He has a first gen iPod Touch.
Most Japanese who are interested in the iPhone don't end up buying it because the kanji input is too slow. For those that do buy it they are buying it because Japanese buy anything with a western brand on it because it's trendy. They buy Avirex and Santana jeans like they're going out of style.
Japanese simply don't want to part with their traditional phone functions because they are used to those functions and don't require all the little options that foreigners covet. They don't care about teathering, push mail and pretending you're drinking beer from a phone. All current phones from all carriers have GPS and 5MP-10MP cameras so there's no demand for those options since they already exist. They love music however, and that's why they buy previous iPod Nanos and some new iPodTouches. I know one Japanese person who owns an iPhone and guess what. She's a programmer for Kyocera and has an iPhone, Android and regular phone for testing.
If you are looking for Canadians, Americans or Brits in Japan all you need to do is go to the nearest Apple store. They're the ones buying. Notice how reports never tell you who are buying the iPhones in Japan. As far as I know, they can't segment demographically. If they could I doubt they would divulge just like they're doing with the 3Gs.
Anyway, the point is this; a good product will sell anywhere. Apple makes exceptional products, and iPhone is not only world-class, it will sell in another galaxy far away. Yes, I said it!
Also it's not that the Japanese hate the iPhone. It just not that desirable here. The Apple store and Softbank stores have people in there looking around and playing with the iPhone but there really aren't that many Japanese buying iPhones.
My best friend who is Japanese just bought a new Softbank phone because it has a 10MP camera. Don't get me started about MP. That's what he wanted so that's what he bought. I tried selling him on an iPhone but no go. He has a first gen iPod Touch.
Most Japanese who are interested in the iPhone don't end up buying it because the kanji input is too slow. For those that do buy it they are buying it because Japanese buy anything with a western brand on it because it's trendy. They buy Avirex and Santana jeans like they're going out of style.
Japanese simply don't want to part with their traditional phone functions because they are used to those functions and don't require all the little options that foreigners covet. They don't care about teathering, push mail and pretending you're drinking beer from a phone. All current phones from all carriers have GPS and 5MP-10MP cameras so there's no demand for those options since they already exist. They love music however, and that's why they buy previous iPod Nanos and some new iPodTouches. I know one Japanese person who owns an iPhone and guess what. She's a programmer for Kyocera and has an iPhone, Android and regular phone for testing.
If you are looking for Canadians, Americans or Brits in Japan all you need to do is go to the nearest Apple store. They're the ones buying. Notice how reports never tell you who are buying the iPhones in Japan. As far as I know, they can't segment demographically. If they could I doubt they would divulge just like they're doing with the 3Gs.
You really should read the links I supplied.
There has been a lot of talk about how hard it is to sell to the Japanese. These useless comments came about because dumb companies like General Motors could not give away their ugly cars trucks to Japanese drivers. I laughed when I read about it years ago. I wouldn't buy GM either, and I am neither Japanese nor do I live in Japan. GM makes the ugliest cars in the world, and the dependability factor is below zero. Why would anybody wants a GM car?
Anyway, the point is this; a good product will sell anywhere. Apple makes exceptional products, and iPhone is not only world-class, it will sell in another galaxy far away. Yes, I said it!
That's right. 25 years ago GM had an 72% Market Share in the biggest market in the universe, the USA and they screwed it by trying to sell crap products. "Yeah, let's all get in our $60,000 Hummers (10mpg), drive to the top of Pike's Peak just to play Frisbee!" That's a great commercial!
The reason for the upbeat sales is because Apple & Softbank have resorted to giving away the 8gb 3G for free with 2 year contract.
Neither Apple or SoftBank will confirm numbers for the 3GS.
So they are giving a 2 year phone away for Free and have resorted to lowering their monthly Bill.
For the 3GS they are breaking up the cost of the phone into your "Contract" for 2 years.
So for all the people that gave RIM/Blackberry shit for giving phones away to cook the numbers take a number and Kiss Rims Ass. Apple is copying they're sales model to attract new contracts.
http://www.getafreeiphone.org/2009/0...year-contract/
RIM is indeed an amazing company even its results are one year ahead - http://www.rim.com/investors/pdf/Q3F09_MDA_FS_PR.pdf
I wish it all the best especially in the face of an onslaught of smartphones.
You really should read the links I supplied.
really? ok we'll I'll assume your links provide insight as to demographics and I was a little off-base. However, even if those stats exist who's to say they're legit stats. Is anything factual these days? What I do believe is what I see with my own eyes in Japan.
really? ok we'll I'll assume your links provide insight as to demographics and I was a little off-base. However, even if those stats exist who's to say they're legit stats. Is anything factual these days? What I do believe is what I see with my own eyes in Japan.
Since you refuse to look at the links, you have no idea what's in them. You think you know much? You don't.
Why should be believe anything you say? Who are you?
Also it's not that the Japanese hate the iPhone. It just not that desirable here. The Apple store and Softbank stores have people in there looking around and playing with the iPhone but there really aren't that many Japanese buying iPhones.
My best friend who is Japanese just bought a new Softbank phone because it has a 10MP camera. Don't get me started about MP. That's what he wanted so that's what he bought. I tried selling him on an iPhone but no go. He has a first gen iPod Touch.
Most Japanese who are interested in the iPhone don't end up buying it because the kanji input is too slow. For those that do buy it they are buying it because Japanese buy anything with a western brand on it because it's trendy. They buy Avirex and Santana jeans like they're going out of style.
Japanese simply don't want to part with their traditional phone functions because they are used to those functions and don't require all the little options that foreigners covet. They don't care about teathering, push mail and pretending you're drinking beer from a phone. All current phones from all carriers have GPS and 5MP-10MP cameras so there's no demand for those options since they already exist. They love music however, and that's why they buy previous iPod Nanos and some new iPodTouches. I know one Japanese person who owns an iPhone and guess what. She's a programmer for Kyocera and has an iPhone, Android and regular phone for testing.
If you are looking for Canadians, Americans or Brits in Japan all you need to do is go to the nearest Apple store. They're the ones buying. Notice how reports never tell you who are buying the iPhones in Japan. As far as I know, they can't segment demographically. If they could I doubt they would divulge just like they're doing with the 3Gs.
It just must be Japanese in America who love the iPhone.
- is this a record?!
Since you refuse to look at the links, you have no idea what's in them. You think you know much? You don't.
Why should be believe anything you say? Who are you?
You're the one saying I think I know too much not me. You don't have to believe anything I say. If Gollum is your messiah all the power to you. I'm just stating what I see every day in Japan when I pop into the Apple store, Bic Camera or Yodobashi camera on my way to work. I also meet a LOT of people from all walks of life in my career here and I can count all the iPod/iPod Nano holders on one hand. I usually ask my clients which carriers they prefer because I'm always thinking of switching to Softbank from AU. The conversation inevitably leads to Apple since the iPhone is on Softbank.
The rest of the world isn't as backward as wherever you come from.
The reason for the upbeat sales is because Apple & Softbank have resorted to giving away the 8gb 3G for free with 2 year contract.
Neither Apple or SoftBank will confirm numbers for the 3GS.
So they are giving a 2 year phone away for Free and have resorted to lowering their monthly Bill.
For the 3GS they are breaking up the cost of the phone into your "Contract" for 2 years.
So for all the people that gave RIM/Blackberry shit for giving phones away to cook the numbers take a number and Kiss Rims Ass. Apple is copying they're sales model to attract new contracts.
http://www.getafreeiphone.org/2009/0...year-contract/
btw it's 'their' not 'they're', you see "Apple is copying they are sales model to attract new contracts." doesn't make much sense which sums up the rest of your post as a matter of fact.
You're the one saying I think I know too much not me. You don't have to believe anything I say. If Gollum is your messiah all the power to you. I'm just stating what I see every day in Japan when I pop into the Apple store, Bic Camera or Yodobashi camera on my way to work. I also meet a LOT of people from all walks of life in my career here and I can count all the iPod/iPod Nano holders on one hand. I usually ask my clients which carriers they prefer because I'm always thinking of switching to Softbank from AU. The conversation inevitably leads to Apple since the iPhone is on Softbank.
I can back up your comments to an extent. You're right that the iPhone has been popular with foreigners in Japan, helped by the fact Softbank offers services friendly for English speakers. However, it's likely 90%+ buyers are Japanese just by chance of statistics.
The iPhone is by no means ubiquitous here in Japan (Tokyo), but you do see it fairly often in all aspects of life. But it's not like in the U.S., where chances are it'll seem as if half the other people within view have an iPhone. It's not like that in Japan at all. There's also the fact that because the iPhone is so easily identifiable, when you see one, you're bound to notice, something harder to do with other keitai.
I'm a grad student here, and most students I go to school with have expressed interest in the iPhone as a concept, but it's missing features crucial to Japanese social life, like infra-red data exchange. I've never met anyone who hated it, though.
In town (and I am many miles form an Apple Store) I see a couple of iPhones every day in the hands of Japanese. Where's this "Japanese do not lika the iPhone" coming from?