The fact that Apple Inc. (NASDAQ:AAPL) wants to grow its market share in Japan is no surprise. It may not be spending nearly as much time in this market as China, but it is safe to say that the company is hoping for big things in this region in the years to come. We talked about this last week, discussing the company’s “iWatch” patent.
It is important to note that mobile device shipments in Japan are on the rise. This doesn’t mean that Apple is going to be the only beneficiary in the country, but Cupertino is definitely in position to take advantage if it plays its cards right.
IDC recently published this report: Mobile Device Shipments in Japan Grew 9.7% Year Over Year in the First Quarter of 2013
Here is what you need to know about the growth of the Japan market and how it could potentially benefit Apple Inc. (NASDAQ:AAPL) down the road:
“According to IDC’s Japan Quarterly Mobile Device Tracker, total shipments in the Japan mobile device market for 1Q13 came to 13.6 million units, an increase of 9.7% on a year-over-year basis. While the PC market declined by -4.6% in the quarter, the rapidly growing tablet market enjoyed year-over-year growth of 187.2% to slightly more than 2 million units. The tablet growth was largely driven by the availability of inexpensive new tablets and huge sales incentives from mobile operators to boost the shipping volumes of LTE (4G) tablets. Smartphone shipments grew 4.0% year over year in 1Q13 to 6.8 million units, or roughly half of the overall mobile device market.”
Like many parts of the world, Japan is experiencing growth in the mobile device market while also dealing with a decline of the PC market. This is a trend that is expected to continue.
While this may sound like great news for Apple Inc. (NASDAQ:AAPL), we have to wonder if the company will be able to compete with lower cost alternatives. For example, the IDC report shows that tablet growth was attributed largely to sales incentives for LTE tablets.
This brings us to idea that Apple Inc. (NASDAQ:AAPL) could potentially roll out a low cost iPhone in the months to come. This would give the company the ability to compete on price, while still relying on its strong brand.
The Japan mobile device market will continue to grow with Apple, among many other companies, hoping to get in on the action.