Japan to Get iPhone - Does iPhone Get Japan?

The move is a big coup for Apple, which has reportedly been in talks with Japanese mobile providers for nearly two years. Apple was rumored to have been working on a deal with the nation's top mobile carrier, NTT DoCoMo (NYSE: DCM) , but disputes over profit division kept the discussions from going anywhere.

Neither Apple nor Softbank is releasing any further details about the new arrangement, including any mention of a launch date, as yet.

A Significant Step

The addition of Japan could be an important step in letting Apple reach its much-publicized goal of 10 million iPhone sales by the end of the year. The Softbank agreement, along with a partnership signed with Spain's Telefonica this week, brings the total number of countries carrying the phone to 70. Japan, however, may hold the most weight of all.

"Historically, it's been difficult for many American firms to get access to Japanese channels of distribution," explained Dr. Daniel J. Howard, chair of the marketing department at SMU Cox School of Business. "For Apple to jump in there and get access in that country is very important in terms of their long-term growth."

In fact, the deal could solidify Apple's status as a worldwide marketing leader, Howard told MacNewsWorld. "The portion of the population that is going to be interested in that product -- in that brand -- is going to be high there relative to the other countries."

Carryover Questions

Japan is known for being an innovator when it comes to new technology -- something that has raised doubts as to whether the iPhone will be cutting-edge enough to make an impact. Despite any such hesitancy, though, the phone's sleek image and easy-to-use video options are likely to excite a certain level of interest.

"The video experience could be one thing that gets Japanese people to embrace the iPhone a little more," Scott Bourne, executive producer of Podango.com's Apple Phone Show, told MacNewsWorld. "In Japan, people spend a lot of time with video on their phones."

If Softbank follows its present pricing model, full Internet access to video content is likely to cost the equivalent of about US$100 a month for Japanese iPhone customers, Bourne said.

Marketing Model

One thing's for sure: Apple is doing something right when it comes to marketing -- and that success is reflected with each new country added onto the iPhone roster.

"They are capitalizing on the technological frenzy," Howard told MacNewsWorld, "and on the fact that people feel they can trust Apple.

"When tech products come out, there is an inherent excitement among a certain population to be the first on the block to give it a try. Japanese consumers have a reputation for being that way," he added.

The iPhone has enjoyed remarkable success relative to its short time on store shelves, Bourne pointed out. "When you look at how new it is -- basically a baby, not even a year old -- to have the kind of footprint it does is certainly impressive."

The Next Steps

Apple is rumored to be on the brink of announcing plans for 3G support in the iPhone's upcoming new model, and anticipation is high that Steve Jobs will break the news during his keynote speech at the Worldwide Developer Forum in San Francisco on Monday. If so, that could be the key to the iPhone's next big boom.

"I think consumer adoption of the phone has gone even better than Apple planned," Apple Phone Show's Bourne told MacNewsWorld. "Now the next thing is to look at the enterprise market and to get businesses to say it's okay to use an iPhone."

"What consumer markets they haven't picked up will come on the heels of that," Bourne predicted, "because people using the iPhone at work will want one at home."