First Time: iPhone Market Share Drops Below 50% in Japan in Two Years
Google Pixel’s Rise: Apple iPhone Market Share Drops Below 50% in Japan for the First Time in Two Years
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Google Pixel’s Rise: Apple iPhone Market Share Drops Below 50% in Japan for the First Time in Two Years.
As Apple’s iPhone becomes increasingly expensive, Alphabet’s Google Pixel is eroding the iPhone’s dominant position in Japan.
Data from Counterpoint Research shows that in the second quarter of this year, Google’s smartphone market share in Japan reached a record-breaking 12%, six times what it was a year ago.
During the same period, the iPhone’s market share slid from 58% a year ago to 46%.
Japan, the world’s third-largest economy, is a massive market for mobile software and gaming, making it a critical market for both tech companies. The iPhone has held a dominant position in Japan, much like in its home market in the United States, but this summer’s decline marks the first time in two years that the iPhone’s market share in Japan has fallen below 50%.
The depreciation of the Japanese yen prompted Apple to raise iPhone prices in Japan before its recent global price hike. It turns out that the cost of this phone has deterred some consumers, especially when the latest model didn’t offer essential new features.
“Japanese consumers are becoming more practical,” said Tom Kang, an analyst at Counterpoint based in Seoul. “There are now more choices. We see growth for Sony and some other brands, but Google’s growth is the most surprising.”
The weakness of the yen has also boosted Pixel sales: for consumers outside Japan looking to buy this phone, it’s more affordable. Pixel is only available in a few countries, and with the yen exchange rate at its lowest level in over 30 years, Japan has become the cheapest place to purchase this phone.
“Japan is becoming a hub for Google Pixel devices,” Kang noted. “So, iPhone is impacted by the weakness of the yen, while Google benefits from it.”
In the foreseeable future, Japanese consumers’ increasing price sensitivity may hamper iPhone sales. Major mobile carriers have already cut subsidies that used to entice customers into long-term contracts, leading many consumers to buy devices through independent channels.
Anshel Sag, Chief Mobile Analyst at Moor Insights & Strategy, stated, “Google and the Pixel team have achieved tremendous success in Japan. These devices seem to mostly come from the affordable Pixel 6a and 7a series, which may mean that Google has successfully captured the mid-range smartphone market in Japan.”
The decline in sales in Japan highlights the challenges Apple is facing. Due to sluggish demand, the company’s sales have declined for three consecutive quarters, and a similar performance is expected this quarter.
The release of Apple’s latest iPhone 15 series may boost its market share, although the starting price of the iPhone 15 Pro Max has increased by $100 this year after discontinuing smaller storage versions offered in the past. Google will unveil its latest generation of Pixel devices at an event on October 4th.
“Price is becoming a significant factor,” Kang added. “Apple’s loyalty among iOS users is much higher than Android users. But Android devices always have a price advantage.”
