• Japan stood out in Q1 2025 as a key market with notable growth in smartphone sales, recording a 31% increase YoY.
• Apple continued to dominate, with its strong sales in Q1 largely attributed to the release of the iPhone 16e, its first mid-range device in three years.
• Major mobile carriers actively rolled out a range of promotional campaigns during this period to stimulate new contracts and device upgrades. Device return programs are quickly gaining traction.

Tokyo, Beijing, Berlin, Buenos Aires, Fort Collins, Hong Kong, London, New Delhi, Seoul, Taipei – July 10, 2025

Japan’s smartphone sales saw a sharp YoY surge of 31% in Q1 2025, according to Counterpoint Research’s Japan Smartphone Sell-through Tracker . Although the country’s smartphone market has long been considered mature and stagnant, this represents an exceptional performance in recent years.

The recent market growth has been largely driven by Apple’s strong performance. In Q1 2025, Apple recorded a 57% YoY increase, fueled by the strong sales of the iPhone 16e, introduced in late February 2025, and supported by the continued success of the iPhone 16 series, launched in 2024. Notably, Apple alone accounted for nearly 90% of the total YoY unit increase in the market. No other OEM recorded shipment growth of more than half a million units during the same period, underscoring Apple’s central role in the current market expansion.

Smartphone Sales in Japan Market (in million)

Strong promotions or campaigns by OEMs and carriers

Along with Apple, intensified promotions by carriers, retailers and OEMs largely drove the Japanese smartphone market’s sharp growth in Q1 2025. Competition for attracting customers has become fierce in this mature market. MNOs and MVNOs launched various campaigns, including device discounts, point rebates, increased data allowances, service bundles, and MNP incentives, effectively stimulating consumer demand for new contracts and device upgrades. Among numerous initiatives, device return programs are quickly gaining traction among Japanese consumers.

Apple’s strong dominance in Japan and its key drivers

Japan’s smartphone market is characterized by Apple’s strong dominance. As clearly shown in the chart below, Apple’s market share in Japan is exceptionally high when compared to other major countries, particularly in Asia. This remarkable dominance can be attributed to a range of historical developments in the telecommunications sector as well as unique cultural factors.

Apple Smartphone Market Share in Major Countries

Outlook

In summary, the exceptional sales increase this quarter is largely attributed to Apple’s release of a new mid-range model – its first in three years – and aggressive promotions by carriers and retailers. This sales growth in the Japanese market is expected to continue into Q2. However, Senior Consultant Yoko Miyashita said, “A rebound and sales decline are expected from Q3 onwards, with iPhone 16e sales already decreasing since June.”

The iPhone 17, expected later in 2025, will likely shake up the high-end market, but its high price may hold back sales. At the same time, Android brands like Samsung and Google are stepping up the fight with competitively priced flagship models in a market already under pressure from inflation, yen depreciation and possible tariff-related price hikes.

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Counterpoint Research is a global market research firm specializing in products across the technology ecosystem. We advise a diverse range of clients – from smartphone OEMs to chipmakers and channel players to Big Tech – through our offices located in the world's major innovation hubs, manufacturing clusters and commercial centers. Our analyst team, led by seasoned experts, engages with stakeholders across the enterprise – from the C-suite to professionals in strategy, analyst relations (AR), market intelligence (MI), business intelligence (BI), product and marketing – to deliver services spanning market data, industry thought leadership and consulting. Our core areas of coverage include AI, Automotive, Consumer Electronics, Displays, eSIM, IoT, Location Platforms, Macroeconomics, Manufacturing, Networks and Infrastructure, Semiconductors, Smartphones and Wearables. Visit our Insights page to explore our publicly available market data, insights and thought leadership, and to understand our focus, meet our analysts and start a conversation.

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