Image via Flickr by sasurau The market for Apple’s iPhone may turn out to be less than half the size once expected in Japan, according to a report in the Wall Street Journal. With worldwide sales of the 3G model approaching 6 million units since its July 11 launch, and at least one analyst predicting total 2008 sales to reach 7 - 8 million units, Japanese consumers may snap up fewer than half a million out of a previously predicted 1 million, writes Journal reporter Yukari Iwatani Kane. “The iPhone is a difficult phone to use for the Japanese market because there are so many features it doesn’t have,” says Eimei Yokota, an analyst with MM Research. More than 10 domestic handset manufacturers compete for a slice of Japan’s cellphone market, one of the world’s largest with annual sales of 50 million phones. Nokia Corp., the industry leader in global shipments, has less than 1% share in Japan. Instead, Sharp Corp. leads the Japanese market, with about 25% of shipments. Models currently sold by Japanese cellphone makers typically contain a high-end color display, digital TV-viewing capability, satellite navigation service, music player and digital camera. Many models also include chips that let owners use their phones as debit cards or train passes. While Softbank, Apple’s cellular phone partner in Japan with 19.5 million wireless subscribers, says the iPhone continues to be popular, Yokota, the MM Research analyst, says one small but must-have feature often cited as a deficiency in the iPhone is the lack of “emoji,” clip art that can be inserted in sentences to jazz up emails. Takuro Hiraoka, an analyst for GfK Marketing Services Japan Ltd., says the problem could be a lack of education. “Japanese users don’t know what to do with an iPhone,” he said. “Sales could grow if Apple provides specific examples of how it can be used.”

The US back to school promotion’s done, but its equivalent has now fired up in the UK. Brits can now grab Apple laptops or iMacs, an iPod nano or iPod touch, and then get a rebate of up to £95 (which doesn’t actually cover the cost of even the cheapest iPod on offer, but still). The most interesting part about this is the offer’s closing date: the spooktastic October 31. It’s pretty rare for Apple to start shipping new Macs when this kind of promotion is still running (although it does sometimes happen), so does this mean we now won’t be seeing new Mac laptops and iMacs until November? Or are British students just getting ‘encouraged’ to clear Apple’s UK inventory, readying the company for its autumn/fall assult? Update: other European Apple Stores are also running similar offers—this isn’t just specific to the UK.

  In the week since Apple announced its “Let’s Rock” event, the organization’s spokespeople have assured all observers that this would be a really critical launch, with bigger news than just a refresh of the iPod product family. Well, apparently Apple and I have very different definitions of “big news.” Because all the organization delivered was more of the same:

An iPod touch that looks more like the iPhone 3G, but loses the black aluminum border that gave the device its own distinctive personality. But hey, price cuts and built-in Nike+ support! (no word on iPhone support, however) An iPod nano that looks more like the nano 2G than its predecessor, adds a few new colors and awkwardly tries to implement the UI from the touch and iPhone. Oh, and you can shake it to shuffle. An iPod classic that literally makes no changes other than bumping the hard drive capacity and cutting the high-end model. It now costs exactly the same as the high-end Zune, and has the same hard drive capacity. A new revision of iTunes with smarter automatic playlist generation, HD TV show downloads, and the return of NBC/Universal programs Bug fixes for the iPhone.  And two lame songs from Jack Johnson. That’s it.

The business sense side of me is saying that Apple has another winner. The designer side of my brain really likes the subtle changes that Apple’s design team has brought to the the product line (except for the ugly iPod classic — hate the use of aluminum there). But the Apple fanatic in me can’t help but me incredibly disappointed by this morning’s activity.  Just how perfunctory was this round of updates? Consider this: The event has been done for 30 minutes, all the new models are available for purchase on the Apple Store, and Apple still hasn’t updated its own website to announce the product launches (EDIT: It went up as I finished typing. STILL). Apple has never gone this long without getting its main site up-to-date. Now, none of us should be surprised by any of this; after the launch of iPhone 3G, AppStore, and the fiasco called MobileMe, it’s little surprise that Apple hasn’t been able to devote many resources to doing more than making slightly curvier cases for the iPod line. But Apple has trained us to expect the best, particularly when they say it’s really time to pay attention. Today, it completely missed the mark. I can’t recall an Apple launch event this underwhelming since the launch of the iPod HiFi and iPod socks. It’s this year’s model, and nothing more. It’s the entire iPod product line as afterthought to the iPhone. And that’s not good. The iPod family is Apple’s highest-revenue business, and any indication that the company is bored with the media player business or unable to innovate beyond bringing iPhone features to iPods is going to mean a rough time in the market. It’s certainly not impossible to do so, Apple’s just in an unfortunate liminal space between the launch of a new business and the adaptation of another. The new nanos, in particular, felt oddly anacronistic. Why go to all that trouble to design such a wildly different case for this revision and then still use the same old clickwheel? Why, in the name of all that is holy, would you copy the horizontal interface on the right, screen on the left interaction found on the flash-based Zune? Why launch nine, count them, nine new colors in a single day when this is a clear incremental upgrade while the company works on a touchscreen nano for the near future? Honestly, the biggest news today is that the iPod touch has dropped in price by $70 and has external volume controls.  It’s the future of the product line, and Apple needs to drive its adoption rapidly while the pre-2007 iPod outlook gradually ramps down. In the mean time, I sincerely hope that we’ll see new Mac announcements on a not-too-distant Tuesday. The entire product line is just begging for processor upgrades, and they’ve been suffering while Apple has put so much attention on the iPhone this year. Not to mention which, it’s high time that Apple brought out a true Home Theater Mac for the living room — AppleTV and Mac mini aren’t cutting it.

Steve Jobs took the stage this morning for Apple’s “Let’s Rock” event, bounding into the lights like a rock star himself. My grandmother would say he looked svelte, but most importantly, he seemed energetic and strong. We’ll be back later in the day with a full reaction and analysis of Apple’s news, but the big news is Steve looks ready to keep on truckin’.

Photographer Pat St. Clair has a couple more panoramic images from Thursday’s big night for the Democratic Party at Invesco field in Denver. Above is a still shot from his vantage point near the Jumbotron behind the media pavillions. St. Clair made it from three fisheye images stitched and interpreted usung PTGui Pro 7.8 on a McBook Pro. The original size image is here. Go here for a dynamic four-image shot that captures the enormity of that historic evening. Unlike St. Clair, I was in Denver without the benefit of a Press Pass or professional photographic equipment and struggled to capture my own memories with the rudimentary camera in my iPhone. Judge for yourself the quality of the iPhone’s camera by clicking on the gallery thumbnails. Large pics and descriptions after the jump.       (more…)