So the iPhone isn't doing well in Japan. Is this a shock in the land where 3G is the norm, and phones are packed with so many features that there are government-licensed cell phone experts to help consumers understand them? The WSJ reports that while Japanese consumers did line up to get an iPhone, and shortages did occur around the July 11 launch, demand for the iPhone has fallen to a third of what it was initially, with stacks of the gadgets languishing in electronics stores. Market research firm MM Research Institute estimates that Apple ( NSDQ: AAPL) sold 200,000 iPhones in Japan in the first two months, with demand declining to such a point that analysts now believe that the phone won't even hit the half a million mark. Apple had thought it could sell one million in Japan.
The success of the iPhone was always questionable in Japan. On the one hand, Apple has a powerful brand presence in the country, where iPods are extremely popular. On the other hand, Japan's cell phone market is one of the world's most sophisticated with its own set of popular features?including OneSeg TV and DoCoMo's mobile wallet. Indeed, some Japanese buyers of the iPhone were carrying their old ones as well to specifically access those features. Softbank, the exclusive Japanese carrier of the iPhone, has already lowered tariffs once to make the gadget more cost-friendly to younger buyers. But analysts believe that iPhone should make more of its AppStore, to show what the gadget can do, to help boost Japanese sales.
Meanwhile, a German court has banned the use of Sipgate, a VoIP application that lets iPhone users make internet calls when hooked up to a Wi-Fi hotspot in Germany, reports Cellular News. Germany's Higher Regional Court of Hamburg found in favor of T-Mobile, iPhone's exclusive carrier in the country, who brought the suit against Sipgate, saying that the company had used "unfair business practices" in order to attract customers, who are tied to T-Mobile for voice calls. T-Mobile argued that customers have to "jailbreak" their mobiles in order to use Sipgate, which is a breach of their T-Mob contract. The software, however, is still available in the App Store, as it can still be used outside of Germany.
The success of the iPhone was always questionable in Japan. On the one hand, Apple has a powerful brand presence in the country, where iPods are extremely popular. On the other hand, Japan's cell phone market is one of the world's most sophisticated with its own set of popular features?including OneSeg TV and DoCoMo's mobile wallet. Indeed, some Japanese buyers of the iPhone were carrying their old ones as well to specifically access those features. Softbank, the exclusive Japanese carrier of the iPhone, has already lowered tariffs once to make the gadget more cost-friendly to younger buyers. But analysts believe that iPhone should make more of its AppStore, to show what the gadget can do, to help boost Japanese sales.
Meanwhile, a German court has banned the use of Sipgate, a VoIP application that lets iPhone users make internet calls when hooked up to a Wi-Fi hotspot in Germany, reports Cellular News. Germany's Higher Regional Court of Hamburg found in favor of T-Mobile, iPhone's exclusive carrier in the country, who brought the suit against Sipgate, saying that the company had used "unfair business practices" in order to attract customers, who are tied to T-Mobile for voice calls. T-Mobile argued that customers have to "jailbreak" their mobiles in order to use Sipgate, which is a breach of their T-Mob contract. The software, however, is still available in the App Store, as it can still be used outside of Germany.
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