DoCoMo, Softbank vie for iPhone contract in Japan

By Ed Oswald | Published December 18, 2007, 12:22 PM

Apple's hardball tactics on revenue sharing seem to be a sticking point with both companies, although moving into the market is extremely important for the iPhone's success.

With 100 million cellular phone customers and the Japanese consumer's penchant for high-end and feature-heavy phones, Japan is a key market for the iPhone to break into.

However, at the same time, operators DoCoMo -- #1 in the market with more than half of cellular subscribers -- and third largest carrier Softbank have both expressed concerns with Apple's request for revenue sharing.

Complaints like this from carriers are nothing new. In France, Apple and Orange had some public disagreements in the press over that exact issue, and several other carriers that were said to be in talks with the company have also cited Apple's revenue demands as a reason for passing on carriage of the device.

In China, both China Mobile and China Unicom have been said to have called off negotiations due to revenue sharing disputes. With Apple running into trouble finding carriers in some markets, it does call into question the company's goal of shipping 10 million phones by the end of 2008.

An estimated 1.4 million phones had sold by the end of September, however the company has stayed mum on updated numbers that include its new markets in Europe.

Sources have told Reuters and the Wall Street Journal that Apple is asking for a 10 percent cut of all data revenues. Talks are said to not be going smoothly with DoCoMo, and the exact status of discussions with Softbank is not clearly known.

Despite the issues Apple is experiencing with finding a partner in Japan, the company is still confident that it will be able to find a partner in the country eventually.

Comments

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Cell phones in Japan are very advanced. Maybe this news will keep the Japanese from buying the iPhone since it has AT&T connections.

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but the downside is that cellphones that are $500-$600 is very, very common here, so it's not an expensive item for cellphone buyers.

Then again, docomo is a dying carrier, the company got LESS and LESS customers every month, AU(KDDI)(2nd) is experiencing a major growth since like 5 years ago, and softbank is also experiencing a damn fast grow as well, so...

I saw on news this morning (here in Japan), that it's more likely to go for Docomo, so I sort of pity Apple. Not very many people use docomos anymore, and the share is only largely because of corporate users, which are slowly begining to switch to other carriers as well....

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What don't you understanding? The product doesn't matter, it's the marketing. I see iPhone's commercial every day. Have you see any other phone commercial? For example, HTC, Nokia, etc... They have very nice phone, however not promoting much. Do you know what a Mogul is? Probably not unless you are actually in the market for a PDA.

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I see adverts for M$ Windows Mobile based devices all the time. People only use those things for work...as most do not buy them, they are given to them by their employers.

People actually buy the iPhone because they want it. It is simply the best phone out there, nothing comes close. Lots of clones are hitting the market, but you can not build an innovative device like the iPhone on top of the turd that is M$ Windows Mobile.

M$ has already stated they are copying OSX for their next M$ Windows Mobile version. lol. typical M$...can not innovate, just follow.

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You really need to get a life.

A new name? Guess account got banned.

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