Japan’s MIC rules are reinforcing Apple’s dominance in the premium smartphone market, according to Counterpoint Research.
The report says Japan’s efforts to regulate excessive smartphone discounts were meant to create a fairer market, but they’ve ended up making conditions even more favorable for Apple.
In late 2023, Japan’s Ministry of Internal Affairs and Communications (MIC) enforced stricter discount rules to eliminate extreme offers such as “1-yen phones.”
Yet the new environment has amplified Apple’s competitive advantages, according to Counterpoint. iPhones’ strong resale performance makes them ideal for “effective 1-yen” promotions, where users return the device after a fixed period and pay very little overall, according to the research group.
Beginning in 2025, the resale price benchmark was revised to rely on Reuse Mobile Japan (RMJ) data. Under this system, Android and Chinese manufacturers’ devices are now being assessed at lower values than before, reducing their trade-in benefits and raising end-user costs.
Instead of competing head-to-head with iPhones in the premium segment, Android and Chinese brands are increasingly shifting their focus to lower-end models that fall outside the scope of government subsidy rules, according to Counterpoint. This shift has reduced choices in the mid-range segment.
Japan’s premium smartphone market (US$800+) grew by 14% year-over-year from 2023 to 2024, “yet Apple still commands an overwhelming 92% share, fueled by its advantageous trade-in values and marketing structure,” reports Counterpoint.
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