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Tuesday, March 24, 2009

Free iPhone? Why do we need to pay for ours?

Have you ever wonder why you pay so much for your iPhone? Well in Japan, it’s offered for free!

Apple’s iPhone has wowed most of the globe — but not Japan, where the handset is selling so poorly it’s being offered for free.

What’s wrong with the iPhone, from a Japanese perspective? Almost everything: the high monthly data plans that go with it, its paucity of features, the low-quality camera, the unfashionable design and the fact that it’s not Japanese.

In an effort to boost business, Japanese carrier SoftBank this week launched the “iPhone for Everybody” campaign, which gives away the 8-GB model of the iPhone 3G if customers agree to a two-year contract.
“The pricing has been completely out of whack with market reality,” said Global Crown Research analyst Tero Kuittinen in regard to Apple’s iPhone prices internationally. “I think they [Apple and its partners overseas] are in the process of adjusting to local conditions.”

Apple’s iPhone is inarguably popular elsewhere: CEO Steve Jobs announced in October that the handset drove Apple to becoming the third-largest mobile supplier in the world, after selling 10 million units in 2008. However, even before the iPhone 3G’s July launch in Japan, analysts were predicting the handset would fail to crack the Japanese market. Japan has been historically hostile toward western brands — including Nokia and Motorola, whose attempts to grab Japanese customers were futile.

Besides cultural opposition, Japanese citizens possess high, complex standards when it comes to cellphones. The country is famous for being ahead of its time when it comes to technology, and the iPhone just doesn’t cut it. For example, Japanese handset users are extremely into video and photos — and the iPhone has neither a video camera nor multimedia text messaging. And a highlight feature many in Japan enjoy on their handset is a TV tuner, according to Kuittinen.

Read the whole article @ Bon Cherry

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