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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.

Convenience store sales up, Mos Burger in Indonesia, lower sales at Toyota and trouble with the iPhone

According to the Japan Chain Stores Association, sales at Japan’s convenience stores increased 6.6% in September from a year earlier. Total sales hit 624.0 billion yen, showing a rise for the fifth consecutive month, as customers continue to flock to convenience stores for their tobacco products. September’s figures follow a 7.5% rise in August.

Keeping watch of Japanese service brands moving overseas, Mos Burger has announced plans to move into the Indonesian market. According to the Nikkei, the firm intends to set up a joint venture capitalized at 2 million dollars. Masuya Holdings will contribute 70% of the funds, while Orix’s Indonesian subsidiary will chip in 20%. This leaves Mos with a 10% stake in the firm. Mos Burger intends to open 15 shops in Indonesia by 2011, with 50 or so being open ten years from now.

According to Attractors Lab, 62.2% of those folks in the market for a new condo in Japan believe that current prices are too high. This figure is up by 6.4% from July.

In the bad news category, Japanese steelmakers are set to cut production for the first time in three years, as demand from automakers has slowed. At the same time, Toyota’s sales are expected to slide for the first time in ten years, by 2%, in 2008.

Finally, the Nikkei is reporting that quality control problems with Apple’s iPhone are apparently “tarnishing” the firm’s image in Japan. Nikkei lists trouble with the “MobileMe” service, as well as faulty chargers, software glitches and the “freezing of the iPhone while in use” - I used to call that a “blue screen of death.” Any iPhone users out there to report?

Apple’s iPhone goes on sale in Japan right now - Softbank makes a solid opening marketing move

It’s 7AM, and that means Apple’s 3G iPhone is going on sale at Softbank’s Omotesando location right now - but not until noon elsewhere. Am I posting from there? Heck no - I already have a phone, an iPod and two pockets, so I’m waiting for all the bugs to be worked out and for AU to start selling the thing.

There has been quite a bit of hoopla and discussion concerning the sale of the iPhone in Japan, and I think Softbank has made a brilliant marketing/PR decision in putting the iPhone on sale in Omotesando five hours before anywhere else in the country. First, this meant that the first iPhone bought in Japan would be bought in Omotesando, which is fashion culture center for the younger generation (or, perhaps better put, lies between Shibuya and Harajuku, the fashion culture centers for the younger generation). Read more

What Japan Thinks on Apple’s iPhone pricing

One of my favorite blogs, What Japan Thinks, has just published an excellent translation/writeup of a recent survey concerning Japanese consumer perceptions of Apple’s iPhone and it’s pricing. What I found most interesting is that just over 50% of respondents to the survey said that they would switch to an iPhone if the monthly cost came to 20,000 yen or less.

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