The Japanese Mobile Market Shift: Xiaomi and Google Rise, Challenging Apple's Dominance

The Japanese Mobile Market Shift: Xiaomi and Google Rise, Challenging Apple's DominanceJapan, once a powerhouse in mobile phone manufacturing, is now facing the decline of its domestic brands. In the first half of 2024, the Japanese mobile market saw a new landscape emerge, with Chinese and American companies Xiaomi and Google rising strongly and challenging Apple's dominance

The Japanese Mobile Market Shift: Xiaomi and Google Rise, Challenging Apple's Dominance

Japan, once a powerhouse in mobile phone manufacturing, is now facing the decline of its domestic brands. In the first half of 2024, the Japanese mobile market saw a new landscape emerge, with Chinese and American companies Xiaomi and Google rising strongly and challenging Apple's dominance.

The Decline of Japanese Mobile Brands

Japanese mobile brands once held a prominent position in the feature phone era and the early days of smartphones, with brands like Sony, Sharp, and Kyocera boasting a glorious history. However, with the advent of the smartphone era, Japanese mobile brands gradually lost their competitiveness, and their market share continued to shrink.

Sony, once a king, led the mobile industry during the feature phone era with its strong technical prowess and innovative capabilities. However, in the smartphone era, Sony failed to seize the opportunity in time, resulting in a declining market share and ultimately becoming a marginal brand.

Sharp, once renowned for its high-quality displays and unique designs, lacked competitiveness in the smartphone era, struggling to compete with global giants like Apple and Samsung. Although acquired by Hon Hai Group, Sharp still holds a certain market share in Japan, but its future faces significant challenges.

Kyocera, once known for its durability and security, lacked innovation in the smartphone era, failing to meet consumers' growing demands. Ultimately, Kyocera announced its withdrawal from the consumer mobile market, shifting its focus to the enterprise market.

FCNT, the successor to Fujitsu's mobile division, declared bankruptcy in 2023 due to financial difficulties.

Balmuda, a new brand, only released one phone before ultimately deciding to end its mobile phone business.

The Rise of Xiaomi and Google

Xiaomi, has risen rapidly in recent years, achieving tremendous success in the global market with its high cost-effectiveness and strong product capabilities. In the Japanese market, Xiaomi has adopted a steady strategy, gradually establishing its brand influence.

Xiaomi first entered the Japanese market at the end of 2019, launching products including the Xiaomi Note 10 series, Xiaomi Mi Band 4, and Mi Home IH Rice Cooker. It also reached a global licensing agreement with NTTDocomo, Japan's largest mobile operator.

Xiaomi began accelerating its expansion in the Japanese market in 2023. SoftBank announced exclusive sales of the Xiaomi 12T Pro, Xiaomi opened a Mi Store in Tokyo's Shibuya district, and Xiaomi Japan's product advertising has become increasingly prevalent, especially promotions surrounding the Xiaomi 13T/13T Pro.

Xiaomi is more inclined to launch high-end models in the Japanese market. After its release, the Xiaomi 14 Ultra entered the Japanese market within three months, accompanied by extensive offline advertising and online marketing efforts, contributing to the Xiaomi 14 Ultra's popularity.

Google Pixel, with its powerful AI capabilities and user-friendly system, has emerged as a force in the Japanese market. Over the past few years, Google has emphasized Pixel's AI advantages, and the AI capabilities of the Pixel 8/8 Pro have undergone a significant leap in quality.

The rapid growth of Google Pixel in the Japanese market demonstrates that, besides Apple, other brands can achieve success in the Japanese market.

Challenges for Apple

While Apple still controls "half the kingdom" of the Japanese mobile market, the rise of Xiaomi and Google is impacting the market landscape. These two companies are the only two among the top five mobile brands in Japan that are still growing (even rapidly growing), and based on product and channel factors, this growth is likely to continue.

In recent years, Apple has lacked innovation in its products. The generational changes of the new iPhones are minimal, and even Apple enthusiasts have little motivation to upgrade.

Apple is also lagging behind Google in large language models. The newly launched Apple Intelligence is only a semi-finished product, while Google's AI capabilities are widely implemented.

Apple's channel layout is essentially complete, while Xiaomi and Google are just beginning to expand their channels in the Japanese market, with ample room for growth.

Conclusion

The landscape of the Japanese mobile market is shifting, and the rise of Xiaomi and Google is challenging Apple's dominance. While Apple's brand loyalty and ecosystem advantages remain strong, the rapid growth and continuous innovation of Xiaomi and Google are narrowing the gap with Apple.

The future of the Japanese mobile market will be a three-way battle between Xiaomi, Google, and Apple. It remains to be seen who will ultimately emerge victorious.