The world's most sophisticated users of wireless technology may be unimpressed by Apple's high-tech gadgetThe Japanese fell for the iPod. So why should they not embrace the iPhone, too? It's tempting to think that Japan's love affair with Apple's (AAPL) iPods would extend to the mobile phone that shares the same high-tech DNA. After all, the iPod controls about 50% of the Japanese market for portable media players, according to Tokyo market researcher BCN, and Apple's carefully cultivated image as a maker of hip, edgy, yet user-friendly gizmos should work in its favor.
But when the Cupertino (Calif.) company wades into the world's most advanced wireless market next year, it could find Japan's 98 million cell-phone users a hard bunch to please. For one thing, consumers here won't be as starstruck by the iPhone's high-tech gadgetry as users elsewhere. Japan's 10 handset makers, which dominate the domestic market, already offer dozens of models typically costing several hundred dollars that send e-mail, browse the Internet, shoot photos and videos, and even pick up live TV broadcasts. Most come with a built-in global positioning system, and some even double as credit cards and commuter passes or safeguard personal data using fingerprint or face-recognition technology.
In its current form, the iPhone doesn't work on Japan's advanced third-generation, or 3G, network. Rumors abound that Steve Jobs & Co. will release a new, faster 3G iPhone next year. But analysts are skeptical that will be enough to please consumers in Japan. In its current form, the iPhone's 3.5-inch touchscreen and its access to online applications such as YouTube and Google (GOOG) Maps are about all that set it apart from other handsets in Japan.
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