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iPhone losing market share in Japan

This entry was posted by on Monday, 15 November, 2010 at

For someone working in the mobile phone industry (oh wait, that’s not the hip way to call it anymore – we’re in the Information Communication Technology industry) it seems I’ve not kept up with trends here in Japan lately. I was under the impression that Softbank, with their exclusive distribution deal with Apple, had the Smartphone market at its knees in a permanent submissive state. I thought that the iPhone 4 was the almighty ruler of the high end cellphone market in Japan ever since it’s launch earlier this year.

While reports like Android Sales Overtake iPhone in the US and …Android Revenue Eclipses iPhone have drifted before my eyes when browsing the tech writers throughout the Internet, I was thinking that here Japan, there were basically only three Smartphones available, and iPhone was the undoubted king of the hill.

Yes, indeed it was so, back when that above statement was true (iPhone, Blackberry & Xperia), but as you can see from Japanese mobile phone traffic data presented by Trend Research last week: already when Sony-Ericsson’s Xperia was launched by Docomo in the Spring, the iPhone’s dominance started to crumble. The text is all in Japanese I’m afraid, but I’ll give you a breakdown of what the graphs represent:

The first graph shows total Pageviews by operator (regardless of device) – Pink is NTT Docomo, yellow is au, and blue is Softbank. Docomo is the overall leader with au and Softbank fighting for second place.

The second graph shows pageviews by devices classified as smartphones. It’s interesting to note the data in April, June-July, and September of this year in particular. Q: What happened in April, that made Docomo gain that much on Softbank? A: Xperia launched. Q: What happened in June/July? A: iPhone 4 launched. Q: What about October? A: First Android phone from au (by Sharp) and Samsung Galaxy (by Docomo) were launched.

Now, the interesting part is looking at Softbank in this case. They have been losing quite a lot of their initial market share in this high end space. The iPhone has also been their only Smartphone and simply been an “Apple Distributor” for a long time, to put it bluntly. Looking at the latest product roadmap from Softbank gives a completely different, much more interesting, picture:

Softbank Smartphone Lineup (This is of course a dynamic page, so the text I write here describes the situation as of today, November 15)

Note that the iPhone is not even mentioned on the “Softbank Smartphone” lineup page. (It still has a very prominent position above all other phone types on the main product page, of course.) They now have six models (some are not launched yet, though) and all are Android! There are two Sharps, one HTC, one Dell (!) and then two which I haven’t identified the manufacturer of yet (mind you, I haven’t put so much effort into it).

au as a comparison also have six models out of which all except one is Android (last one in Windows).

Docomo have 11 models (including the Galaxy Tab from Samsung) where all but three are Android (I could be wrong here, their web page is not that clear).

All in all, what is my point? Well, it’s going to be an interesting Smartphone market here in Japan going forward – much more than I expected, as there is no one single dominant player right now. Although the elephant in the room is now Google, with an ever gaining share of the Smartphones’ OS here. Looking forward to follow how the market develops!

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