The survey, conducted by iShare over a relatively small sample size of 402 Japanese wireless subscribers, found that as of earlier this month slightly more than 91 percent held no plans to purchase one of the updated touch-screen handsets following its announcement.
For SoftBank, the good news is that more than half of the respondents who said they planned to purchase the new iPhone are currently subscribers of a rival carrier's service and would need to make the jump to legitimately obtain the device. Overall, 39.8 percent of participants in the study said they were enrolled with NTT DoCoMo, 26.9 percent with KDDI's "au," 22.9 percent with SoftBank, and another 6.5 percent with other providers such as Willcom and Emobile.
Of particular concern to Japanese mobile users was the ability to replace the battery in their cell phones. Approximately 77 percent said they'd "prefer replaceable batteries," while the remainder said they didn't care if the battery is replaceable or not. However, 88 percent of those people who had replaced a battery in one of their previous phones said they'd prefer to have the same option going forward.
iShare noted in its report that the lack of a replaceable battery in the iPhone could be a deal breaker in Japan. It also noted that intent on the part of Japanese consumers to buy one of the Apple handsets appears to have dropped considerably between July 2007 and today.
Those sentiments on the part of Japanese consumers may have changed in recent weeks, however, given that iShare conducted its survey from June 5th through the 6th — shortly after SoftBank announced plans to carry the handset locally, but before the phone's $199 maximum entry-level cost was announced. That's likely half the price most consumers had grown to expect.
For Apple, the stakes surrounding its iPhone 3G launch in Japan and other international regions are extremely high. The Cupertino-based company has made a considerable wager in effectively 'subsidizing' the cost of each unit, or sacrificing revenues estimated at around $200. The company hopes to make up for a lack of shared revenues over an extended period of time through sales of high margin services and software to an incrementally larger user base.
In a report issued Wednesday, investment bank Morgan Stanley said they like the company's odds and expected iPhone sales to more than double from 12.9 million units in 2008 to approximately 27 million units next year. Should one out of every 2 iPhone owners buy one application from the company's App Store at $9.99 each year, and 8.5 percent also sign up for its MobileMe service, it would help drive Apple's revenues in excess of $42 billion, the firm said.
However, should Apple continue to see sales of Macs rise while selling 30 million iPhones, two apps to each user, and MobileMe to 30 percent of iPhone customers, 2009 revenues could surge to nearly $48 billion.
163 Comments
This is not much of a surprise. Japan is usually inundated 24/7 with the newest and cutting edge in technology. Sure, the iPhone is nice but nothing worth going crazy over.
This is a false assumption. Apple doesn't subsidize the retail sale price of an iPhone.
A 4 GB Sandisk USB flash drive is sold for a retail price of $29, complete with the U3 software. How much do you believe than an iPhone costs to manufacture?
I own an iPhone and I'm not bonkers about the iPhone 3G either. It's not HSDPA, it's 3G. The camera is still 2MP, 3.2 would have been nice. And if the camera had a little flash it would being absolutely superb. Though the rumored front-facing camera for video calls was not necessary. No copy & paste still? WTF? Still no A2DP? WTF again? Can't say I blame Japan, though most of them have yet to see the UI in action, so that will sell some when they do.
Side note though; if only 5% of Japan were interested and bought the iPhone Apple would sell 6.3M iPhones to them
I own an iPhone and I'm not bonkers about the iPhone 3G either. It's not HSDPA, it's 3G. The camera is still 2MP, 3.2 would have been nice. And if the camera had a little flash it would being absolutely superb. Though the rumored front-facing camera for video calls was not necessary. No copy & paste still? WTF? Still no A2DP? WTF again?
HSDPA is, essentially, 3G (more 3.5G) and yes, the iPhone is HSDPA capable.
Being conservative the iPhone costs about $130 to produce. Despite the outrageous claims by those analysts that is costs about $100. Then you have to add on shipping, marketing and selling costs. Apple's making money on the iPhone, but they are building a user base more importantly. And they are getting an amount from each carrier too, you could bet your life on that.