Will Japan Buy the iPhone?(The Technologist)

Byline: Akiko Kashiwagi

The Japanese mobile industry is on Apple alert. This is the year CEO Steve Jobs said Apple would launch the iPhone in Asia. So far, Apple isn't saying when the introduction will come to Japan. Despite expectations of news at the Macworld conference last month, Apple hasn't given any details. Japanese consumers, who revere Apple for its technology and elegant design, are full of anticipation.

The iPod has captured more than 50 percent of the portable-music-player market, beating even Sony devices, and expectations for the iPhone are high. Scores of bloggers have pledged to buy the phone as soon as it comes out, and anecdotes abound of Japanese tourists buying iPhones abroad to use simply as an iPod.

Despite the fan factor, whether Japanese consumers embrace the iPhone to the degree they snapped up iPods is an open question. The longer it takes for Apple to launch in Japan, some analysts say, the more challenging the battleground will become. Over the past year, Japanese handset makers have been introducing models that not only have more enhanced functions but also have sleeker and more sophisticated designs. "Timing counts," says Michito Kimura, an industry analyst at IDC Japan.

Last month SoftBank launched 15 new models that emphasize style and design more than ever. They come in a variety of textures, including leather and wood. Dozens of new models to be released in the coming months are expected to reflect the iPhone's influence. The country's second largest carrier, KDDI, recently announced a joint project with Sony to expand its mobile music-download services to allow sharing of files with a PC.

Aside from handsets, new services may make Japanese consumers reluctant to drop their old phones for an iPhone. Just about all Japanese handsets are equipped to be used as mobile wallets, ...