Here Are the Details of Apple’s Big Deal in Japan
How big is Apple’s (NASDAQ:AAPL) distribution deal with Japan’s largest carrier? Although Apple recently announced that it had reached a distribution deal with NTT DoCoMo (NYSE:DCM), the Cupertino-based company did not reveal many details beyond the September 20 launch date.
However, a recent report from Japan’s Nikkei newspaper via Apple Insider claims that Apple’s deal with DoCoMo requires that at least 40 percent of the carrier’s overall handset sales consist of iPhones. If this is true, it would appear that both Apple and DoCoMo compromised on their original quota requests.
According to Bloomberg, DoCoMo CFO Kazuto Tsubouchi previously suggested that the Japanese carrier would offer Apple’s iPhones only if it could limit the device’s sales to less than 30 percent of the company’s total handset sales. On the other hand, according to a rumor reported by Reuters earlier this year, Apple was seeking a 50 percent quota from DoCoMo.
DoCoMo is Japan’s largest carrier with over 60 million subscribers and a 45 percent share of the market. However, the carrier has been adding users at a much lower rate than rivals SoftBank and KDDI.
CEO Tim Cook noted in Apple’s distribution deal announcement that, “We’ve enjoyed tremendous success with iPhone in Japan, in fact it’s the top selling smartphone in the country.” Thanks to this new distribution deal, it appears that Apple’s iPhone will maintain its smartphone market crown in this lucrative Asian market.
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