‘Moshi, Moshi Pixel,’ says Japan as iPhone sales drop

Although Google‘s Pixel phones still represent a small fraction of the smartphone market, they are gradually becoming more popular, especially in the world’s third-biggest economy, Japan. Over the last year, Pixel phones have seen a turnaround in sales, taking a chunk away from its ‘best friend forever,’ the Apple iPhone.
iPhones have been leading the market in Japan for a long time, just like in the US market. However, Apple’s grip on the Japanese market has been slipping as Google Pixel phones are gaining popularity in the region.
According to Bloomberg, citing Counterpoint Research data, Google Pixel phones now hold 12 per cent of the smartphone market share in Japan as of Q2 2023, up from a mere 2 per cent in Q2 2021. Meanwhile, the market share of the iPhone during the same period dropped from 58 per cent to 46 per cent, and it is the first time in two years the iPhone failed to capture more than half of the Japanese market.
Anshel Sag, principal mobile analyst at Moor Insights & Strategy, has stated that the majority of the devices sold by Google in Japan belong to the budget Pixel 6a and 7a series.
The yen’s decline caused Apple to increase iPhone prices in Japan earlier than the global price hikes. The elevated cost of the device is discouraging buyers, while the newest models lack must-have features.
Meanwhile, the weakening yen has boosted sales of Google’s Pixel phone, as it has become a great bargain for non-Japanese buyers. The limited availability of the Pixel and the yen’s value decline make it the cheapest place to purchase the Pixel phones.
Apple’s sales drop in Japan highlights the challenges ahead. The company’s sales have declined for three straight quarters due to an industry-wide slump. Despite this, the release of the iPhone 15 series could boost market share. However, the iPhone 15 Pro Max’s starting price has increased by $100 this year.
“Price is becoming an important factor,”Tom Kang, analyst at Counterpoint, said. “Loyalty for Apple and iOS is much higher than Android, I’d say. But Android devices always have the price advantage.”
Pixel phones are gaining traction not just in Japan but also in North America. According to Canalys, Pixel was the only brand that experienced growth in Q2 2023, with shipments up to 1.2 million units, double growth from last year. This led to a doubling of Google’s market share in North America to 4 per cent. Meanwhile, every other top-five smartphone brand saw a decline in shipments YoY, with the market also seeing a downturn.