Why Apple won market share in Japan

Although iPhone sales slowed dramatically in recent years, Japan is still a stronghold for Apple. Why did Apple do well in Japan? There are some reasons for that but these bases are disappearing and the company is losing its shine.

Before everything, I would like to declare that I'm an Apple hater. I don't like to see Apple's weird commercials. Apple is not so superior and users are not special. Attitude of Apple products users is almost like religious and they regard non-Apple products as garbage. In addition, Apple products are fraudulently expensive without exception. Even cables are 2-5 times (or more) expensive than Android's.

As for iPhone, it's clearly inferior in three points. Firstly, user customization is non-existent. "Use as it is and don't change anything" is the slogan for Apple products. Secondly, there is no built-in external storage device. Secure Digital cards are cheap and abundant but Apple hates them. Thirdly, there is no waterproof. Omitting external storage and now even trying to ditch headphone jack and using unique cables are still not simple enough to make it waterproof.

I don't like Steve Jobs too but he had something. He's not a tech guru but he was a designer marketer visionary. Steve Jobs knew what he wanted when people didn't. That was great enough to advance in the tech industry at that time, but now smartphones are commoditized and everywhere. It's not very difficult to assemble smartphones (and electric cars recently) so companies must promise better user experience to get more popular. That means software development is more and more important than assembly and that's why software giants are flowing into Autonomous car business.

Anyway, I stay away from Apple products, but looking around, a lot of Japanese people use iPhones and certain number of them will continue using them. I understand that iPhones are good options for those who can't take time to learn and those who require fool proof, but the true reasons why iPhones sold well in Japan are basically in its timing and Japanese business culture.

Apple's iPhones are one of the first smartphones introduced in Japan, so Apple took first-mover advantage. There weren't any rivals around at that time and gadget lovers and trend followers flocked. Advertising worked well too and iPhone became a default smartphone for Japanese people.

Android devices came little late, and they were bad. Early generations of Android phones were really bad functionally and unsophisticated design boosted bad reputation. It's not that Apple won, but Google and phone manufacturers lost. However, android makers caught up gradually and now android phones are at least as good as iPhones.

IPhones came first and Android defeated itself, but these are not enough to explain Apple's strength in Japan. The biggest reason is that Apple took advantage of the business model of Japanese mobile phone operators. Cell phones and smartphones are expensive, so Japanese mobile carriers sell them on credit. It's very common in Japan. Often consumers aren't aware of this because operators gave impression to give people phones for free when it is not. They provide phones first and collect large bills for years to get back phones' costs. By doing so, consumers can get new phones instantly and operators get hefty monthly payments as long as contracts are renewed. IPhones have been sold in this way too until recently so people weren't aware of how expensive they are. But the days are over and regulations are changing and it's becoming harder to sell devices like this.

Smartphones are commoditized and Apple lost first-mover advantage. Android phones caught up and there is no longer noticeable difference between iPhones and Android phones. Regulatory changes made mobile phone operators harder to give away phones so consumers are increasingly recognizing expensive device costs. Considering these, Apple's future in smartphone business is bleak. Even in the best scenario it would struggle to maintain its market share and profit margins.