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iPhone takes baby steps ahead in Japan

Although Apple’s iPhone has thus far been sold exclusively in Japan by Softbank, Japan Communications intends to launch a service that will allow the iPhone 4 to tun on DoCoMo’s wireless network, according to various sources.

This is good news, until one looks at the price tag. While a new iPhone is supplied for free under multiyear contracts with Softbank, consumers will have to pay about 60,000 yen to buy an iPhone that runs on Japan Communications’ new DoCoMo link.

As with all technologies, prices will eventually fall. Unlocked smart phones and user-controlled SIM cards are the way of the future, and its good to see DoCoMo (reluctantly?) leading the charge toward normalcy.

Apple: iPad to go on sale in Japan on May 28

Apple announced on Friday that it intends to put the iPad on sale in Japan (Australia, Canada, France, Germany, Italy, Spain, Switzerland and the UK) on May 28. Advance orders can be made from Monday.

Apple released the iPad in the US on April 3, and announced it had sold one million units 28 days later.

The device that Nintendo president Satoru Iwata has reportedly dubbed “the enemy of the future” now has a definite arrival date in Japan. Now we just have to see how long it takes Apple to move one million units in Japan. Any predictions?

Long overdue: Sharp, Panasonic, Fujitsu and NEC to standardize mobile software

With development costs per handset in the range of about 25 billion yen, it seems about time Japan’s mobile phone manufacturers got together and decided on a standardized platform. According to a report in Reuters yesterday, Sharp, Panasonic, Fujitsu and NEC and set to launch a unified core software platform when developing their next generation handsets for NTT DoCoMo. Read more

Softbank to offer Armani handset

Softbank announced yesterday that it intends to launch a new Samsung handset designed by Giorgio Armani. The unit has a 2.2 inch OEL screen and a 3 megapixel camera, and will be available in either black or white models. Softbank claims that while in use, the phone will create a “night view” image by turning on blue, green and red LED lights.

Given that few people actually look at their phones while using them, that seems like an odd selling point.

From images on the Softbank website, the handset actually appears to be quite a pedestrian model. The address book and mail functions don’t seem to offer anything different to the Softbank model I purchased in late 2006 to replace the J-Phone model that I could no longer solder together.

Although Softbank will most likely not make public the number of units sold, it would still be interesting to find out how well this partnership works out.

Softbank outpaces DoCoMo, AU for new subscribers in August

Last month, we noted that in July, DoCoMo had ended Softbank’s 26 month run as the carrier enlisting the most new subscribers. That post questioned how long DoCoMo could stay at the top, and it seems the effect of its summer roll-out of new mobile handsets has worn off.

According to today’s Nikkei, Softbank announced it gained 115,100 new net subscribers in August, down from 137,600 in July. NTT DoCoMo slipped to second place in August, with 112,900 new subscribers, down sharply from its 143,600 figure in July. Amongst the big three mobile service providers, KDDI’s AU unit once again brought up the rear, netting 77,800 new subscribers in August. However, AU’s figure was solidly up from July’s 56,600, and it was the only one of the three firms to see a rise in the number of subscribers in August.

Mobile phone price wars set to commence?

Softbank has announced that starting next Tuesday, it will waive its 980 monthly fee for five months for all customers who switch from another carrier and sign up for the company’s popular White Plan. Until July, Softbank had led all carriers in new subscriptions for 26 consecutive months, though NTT DoCoMo moved in front last month. This move looks designed to put Softbank back on top of that list.

Following the announcement, share prices for all three of Japan’s major mobile carriers fell, with Softbank falling 40 yen per share to 2,075. Also on Thursday, the Nikkei reported that Softbank is set to issue about 60 billion yen worth of three year notes to retail investors, with a coupon around 4.5%, sometime in September. Softbank also issued 60 billion yen worth of two year notes back in June. Read more

DoCoMo led all mobile carriers in July new subscribers

As an update to last week’s article on quarterly losses at NTT, it was announced Friday that out of Japan’s mobile service providers, NTT DoCoMo gained the most new subscribers in July.

Prior to July, Softbank had gained the most new subscribers for 26 consecutive months. It had been 35 months since DoCoMo led a single month in subscription gains. DoCoMo added 143,600 users in July to reach 55 million subscribers, while Softbank added 137,600 users to reach 21.1 million in total. AU added 56,600 new users and now has 31 million subscribers.

Apple’s iPhone, carried by Softbank, was the second most popular handset sold in July, while Sharp’s Aquos Shot, a DoCoMo offering, saw the highest sales.

Does this signal the end of Softbank’s reign at the top? DoCoMo has slashed data transfer fees, and it may prove more difficult for Softbank to follow suit. Back in April, DoCoMo announced that the cut in data fees would reduce its operating profit by about 40 billion yen. Still, it remains to be seen how long DoCoMo can stay in the top spot, or how much it might cost the company to gain market share percentage points.

A tale of two businesses: NTT and McDonald’s release results

Earlier today, NTT announced that its net profit had fallen 20.5% in the first quarter (April-June) of 2010, to a total of about 139.6 billion yen. At the ame time, operating income fell 12.4% to 325.8 billion yen.

Without question, NTT is operating in a hostile, competitive environment, especially with regards to its mobile unit, NTT DoCoMo. Last week, DoCoMo announced that first quarter profit had slid 15.1% to 147.4 billion yen. It is now obvious that DoCoMo is becoming a burden on the NTT group. In March 2008, DoCoMo’s share of Japan’s mobile phone market fell below 50% for the first time since 1998, as rivals AU and Softbank have chipped away at their customer base. How did DoCoMo fight back? They offered free calls between family members, released a line of new handsets and rolled out a new logo. Read more

More on the iPhone in Japan

Over at Mobile in Japan, Paul Papadimitrou has written a good post on the perception that the iPhone has been a failure in Japan. His post looks into the structure of the Japanese mobile market while debunking many of the claims that the iPhone has been a failure, while my own article on the subject published at Japan Inc four months ago takes a look at the practical problems holding the iPhone back from dominance in the Japanese market.

It’s unfortunate, however, that one has to sign up for an account simply to post comments at the Mobile in Japan website.

Nokia pulls out of Japan

Earlier today, the Nikkei announced that Nokia will cease shipping handsets to DoCOMo and Softbank from January 2009. Although Nokia holds a 38% share of the global mobile handset market, it’s share in Japan’s mobile market is just under 0.5%.

Developing software for the Japanese market - and DoComo’s iMode in particular - is simply costing Nokia too much money.

Yet, Reuters is reporting that Nokia intends to launch its own MVNO (mobile virtual network operator) system sometime in 2009.

This story was also picked up by blog omJapan.

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