The Japanese giant, NTT DoCoMo is the largest mobile carrier in the Land of the Rising Sun. It has lost a large percentage of its customers as an Apple's iPhone deal remains elusive.
DoCoMo has 60 million valued customers in Japan. Yet it hasn’t struck a deal with Apple regarding the iPhone. The hitch along the way has been DoCoMo’s persistence in preloading its services on the devices it carries. It has paid the price though. Over 3.2 million users have shifted their allegiance to two of its competitors over the past four and a half years. According to Reuters, DoCoMo is stuck in its ways though. The protectionism policies it follows have harmed and not helped it. The CEO, Kaoru Kato said that his company was all about a lifestyle system. While DoCoMo has been a trendsetter in matters of smart phone services, other companies have offered better options that have proved more popular and convenient.
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It’s a case of the unstoppable and the immovable when it comes to Apple and DoCoMo. They remain fixed in their ways and so a rapprochement appears nowhere in sight. But the real loser in this battle is DoCoMo. DoCoMo is keenly looking forward to the occurrence of an iPhone glut at opposing carriers Softbank and KDDI. The administration at DoCoMo thinks Apple will be forced to change its mind this way. But the fact of the matter is that DoCoMo’s principles clash with Apple’s philosophy. The two are like oil and water. They just don’t mix.
Apple’s iPhone is a leader in the Japanese market. And it continues to garner strength as a prominent brand that commands global loyalty. However, the recent ascent of Samsung has made Apple wary. It does not want to lose its hold on its share of the market in Japan. Therefore, ultimately either DoCoMo or Apple will have to relent under the pressure of economic conditions. Both can gain a lot by cooperating and both will lose if they carry on their mutual obstinacy. Samsung’s share of the Japanese market is one-fifth of Apple.
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So Apple is secure for now. But for how long exactly; that is a difficult question to answer. Samsung’s meteoric rise to fame may upset the apple cart so to say. And if DoCoMo decides to stay put in its ways and not budge, it will have to forfeit its present glory as the major Japanese wireless carrier. The decision lies in the hands of the CEOs of both companies.