Japan Says 'Domo But No Domo' To iPhone 3G?

Apple may be heading toward "failure" with the iPhone 3G in Japan, according to UBS senior analyst Inui Makio, having sold only 20% of its projected one million units.

Apple and its Japanese carrier, Softbank, are both keeping mum on the actual figures as a matter of discretion - but sales seem to be quite a bit short of Makio's own projected figure of 350,000 by year's end. In fact, Softbank has already lowered its pricing plans in a move calculated to increase sales.

What's holding the iPhone 3G back? Most Japanese cell phones come with certain standard features such as pictograms in text messages and emails - and in Japan, texting is an entire order of magnitude more important, not only culturally but financially (it's cheaper).

Another blow is the ubiquity of the Felcia technology in most Japanese phones that allow the phone to act as a virtual wallet, which along with the 1Seg mobile television feature popular on some Japanese phones is a trick that even the iPhone 3G can't pull off.

With cultural differences making the iPhone 3G look like a device designed for the western market (which is true), it looks like the iPhone 3G will not be turning Japanese any time soon.

Analyst: 3G iPhone Headed Towards Failure in Japan [DailyTech]