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Apple Inc. dominates Japan; giving hard time to Samsung


The share of Apple in the Japanese smartphones market has reached 37%, exceeding that of the 36% — same as in the United States. This means that Japan is now the main market for the company led by Tim Cook.

As per WSJ, Japan has become the top region with the fastest growth for Apple in the past two years, far exceeding its domestic market and the expanding economies of Greater China and the rest of Asia.

Japan is also home to large profit margins for Apple, and the only one of the five regions in which the operating profit of Apple has grown in the last fiscal year.

The iPhone received a boost from Japanese consumers since the end of September, when the mobile operator NTT DoCoMo began offering the iPhone to its 61.8 million customers. However, even before September, the iPhone has been the bestselling smartphone in the country with a market share of 37%. The share is greater than the 36% that Apple currently holds in the U.S., according to the latest market data report by Kantar Worldpanel.

Japan is the fourth largest market in the segment of smartphones after China, United States and India so the leadership in this country will push the success of the iPhone in the world and earn additional profit to Apple. Among other things, the analyst firm Cowen & Co. estimates that Apple will sell between 11 and 12 million iPhones in Japan in 2013, about double of what was sold in 2012. And, it’s supposed to reach a market share of almost 50% by 2014.

Japan has become one of the main markets of the smartphone world since the country has gone through two decades of economic malaise, and it’s still experiencing a period of economic contraction. In addition, local companies operating in the consumer electronics segment had to contend with foreign competitors for decades.

Apple has succeeded in conquering that territory, thanks to the popularity that it got supported by a strong marketing campaign and a massive push by local carriers. Samsung is now on the fourth position with falling market share, and it will have to get a way to break NTT DoCoMo and Apple alliance to succeed.

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