Friday, September 6, 2013

iPhone available for NTT Docomo in Japan

NTT Docomo will begin to offer iPhones to their customers starting from this fall after years of negotiations.

top docomo iphone japan
Apple and the Japanese company NTT Docomo have been negotiating for years regarding the terms for offering iPhones to their customers. NTT Docomo is the largest mobile operator in Japan with 45% of the Japanese market and therefore is also highly relevant channel for Apple to sell their iPhone products. However, the negotiations have been painfully slow and in this process NTT Docomo has lost a large number of customers who have switched to other operators who have been offering iPhones for years.

The agreement now between Apple and NTT Docomo in Japan means that Apple can potentially significantly strengthen its position in Japan which so far has been relatively limited.

While it is not public why the negotiations have taken this long, it is likely related to the very strict and harsh terms posed by Apple. As known, selling Apple iPhones for most operators and retailers is tough and is not a revenue source. Instead, the operators and retailers have to rely on selling external services to make any revenue since Apple strictly controls the prices and does not even provide any guarantee for delivery dates of their products. In addition, Apple does not provide any aid in terms of marketing either, which has to be solely financed by the operators.

With the NTT Docomo agreement finished in Japan, it is now likely that the focus will turn to the Apple negotiations with the huge China Mobile company in China to reach an even larger market.

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