Apple (AAPL) is wasting no time getting into Japan. The country has about 100 million cellphone users and the market is dominated by 3G, allowing customers to use the internet, video, and data exchange.
Japan is perfect for Apple. The consumers will spend large amounts on handsets. Small consumer electronics devices were invented there. The country has three large cell operators–NTT Docomo (DCM), KDDI, and Softbank. Apple can play them off against one another to get the best deal.
It is not hard to see how Apple could sell several million iPhones in Japan during the first few quarters it is in the market. Except for one thing.
Apple still does not have a 3G product. And Japan is 3G. The wireless market there is about speed. The expensive handsets are set up to take advantage of the multimedia content which has flourished due to fast connection speeds.
Jobs made one mistake with the iPhone. He did not follow the 2.5G model with a 3G version fast enough. And, the company may pay the price.
Douglas A. McIntyre
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