Alphabet Inc.’s Google Pixel is eroding the iPhone’s dominance in Japan as the Apple Inc. device gets pricier, finding success after years of misfires.
Google phones accounted for a record 12% share in the Asian country in the June quarter, six times what it was a year ago, according to Counterpoint Research data. During the same period, the iPhone’s market share slumped by almost as much: to 46% from 58% a year earlier.
“Japanese users are becoming more pragmatic,” Tom Kang, a Seoul-based analyst for Counterpoint, said in an interview. “There’s now more opportunity for alternatives. We’ve seen a little bit of growth in Sony and a little bit of growth in some other brands, but the growth of Google was most surprising.”
With the yen playing a decisive role in who gets a bigger share from one of the world’s largest smartphone markets, there’s an open question around whether the trend will last. But a growing price sensitivity appears likely to weigh on iPhone sales in Japan for the foreseeable future. The major mobile carriers have cut back subsidies enticing customers to sign up for lengthy contracts, and many have instead turned to buying devices through independent channels.
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