“Google’s Pixel Gains Momentum Over Apple’s iPhone in Japan“
Similar to American patterns, the dominance of the iPhone is changing in Japan. For the first time in the past two years, Google’s Pixel, made by Alphabet Inc., is overtaking Apple’s iPhone in market share of more than 50% in Japan.
Google’s Pixel reportedly gained a record 12% market share in Asian nations in the June quarter, a six-fold rise from the prior year, according to Counterpoint Research data. The market share of the iPhone has drastically decreased over the same time period, going from 58% to 46% when compared to a year before.
Due to its ranking as the third-largest economy in the world and its importance as a center for mobile software and gaming, Japan has become a battleground for these two Silicon Valley titans. The iPhone has maintained its market share in Japan, much like it has in the US, but its latest decline marks the first time in more than two years that Google’s Pixel has surpassed it.
The iPhone has become less accessible as a result of Apple’s decision to raise prices in Japan ahead of increases elsewhere in the world due to the weakening yen. This price increase is starting to be felt by Japanese consumers at a time when the newest handsets do not offer ground-breaking features.Â
According to Counterpoint researcher Tom Kang, who is located in Seoul, “Japanese customers are getting more rational. There are now additional options. Sony and other businesses have experienced modest increase, but Google’s expansion has surprised us the most.
The yen’s depreciation has also helped Pixel’s sales, making the phone an attractive option for customers outside of Japan. Japan is the cheapest spot to buy the smartphone due to the limited availability of Pixels in several nations and the historically low yen prices.
Japan is evolving as a transshipment hub for Google Pixel devices, according to Kang. Thus, Google gains from the lower yen while the iPhone suffers.
It is still unclear whether this trend will continue given the yen’s huge influence on some of the biggest smartphone markets in the world. However, future iPhone sales may be impacted by Japan’s growing cost sensitivity. Major mobile carriers have stopped providing incentives to customers to sign long-term contracts, and as a result, many have started buying their own smartphones through open channels.
Japan is a significant success story for Google and the Pixel team, according to Anshel Sag, Chief Mobile Analyst at Moor Insights and Strategy. The fact that the majority of these smartphones appear to be from the affordable Pixel 6a and 7a series shows how successfully Google has entered the Japanese smartphone market.
Apple in Japan is facing difficulties because of declining sales. Sales have decreased for the company in each of the last three quarters, and the forecast for the current quarter is expected to be similar as a result of industry-wide weakness brought on by the ongoing pandemic.
Although this year’s increase in the beginning price for the iPhone 15 Pro Max by $100, following the elimination of lower-storage alternatives in prior years, may have a part in consumers’ decisions, the debut of Apple’s newest iPhone 15 series may help reverse the trend.
The next Pixel devices from Google will be unveiled at an event on October 4th, which might further ratchet up competition in the Japanese market.
