Why Do Japanese People Buy Expensive iPhones Despite Being a "Poor Country"?

Why Do Japanese People Buy Expensive iPhones Despite Being a "Poor Country"?

Updated October 23, 2026: iPhone prices now reflect Apple’s official Japanese prices as of October 23, 2026, after the July and September price rises, and the old “60–70%” share claim has been replaced with the latest shipment, user and web-traffic data. Japan’s handset-discount rules, the used and refurbished market, and exchange-rate figures have also been added.

Introduction

Globally, the smartphone market is dominated by Android with approximately 70% market share. In Statcounter’s September 2026 data, Android accounted for 69.3% of worldwide web traffic from mobile devices and iOS for 30.7%.^[1]

Japan has been the exception, often called an "iPhone Kingdom." In 2026 data, however, how strong the iPhone looks depends heavily on what you measure (see the table below). This article previously said iPhones held "60-70%" of the market; only the web-traffic share comes close to that, and the share of people actually using iPhones as their main phone is below half.

This raises the question: despite Japan being called a "poor country among developed nations" due to economic stagnation, why can so many people afford iPhones that cost 150,000 yen to more than 200,000 yen (roughly $1,000-1,400)?

This article explores the background from economic, social psychological, and cultural perspectives.

📊 iPhone share in Japan (key 2026 data)

In short, half of new phones sold are iPhones, and about 60% of mobile web traffic comes from iPhones, yet across all age groups more people use Android. In the same MMD survey, iPhone 17 was the most-used model among people in their teens and twenties, while Sharp’s AQUOS led among people in their forties and older. The concentration of iPhones among younger people likely feeds the impression that "everyone has an iPhone."^[4]

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Global Wealth and Japan's Reality

Let's first examine global income comparisons.

According to OECD and IMF statistics, Japan's average annual income is approximately 4.5-5 million yen. In contrast, the United States averages about 8 million yen, while Germany and France are around 6 million yen.

Furthermore, Japan has heavy tax and social insurance burdens, resulting in take-home pay being quite low among developed nations.

Meanwhile, prices have definitely risen compared to before, with imported goods prices soaring due to the weak yen.

Apple products are a prime example - iPhones that could be purchased for under 100,000 yen a few years ago now cost close to 160,000 yen even for the standard model, and Pro models exceed 200,000 yen.

💴 Two price rises in 2026

Apple raised iPhone prices in Japan on July 18, 2026, and again in September. According to press reports, the 256GB iPhone 17, for example, went from 129,800 yen at launch to 142,800 yen in July and 159,800 yen in September, a rise of 30,000 yen in just over a year. Apple has not explained the Japanese increases, but U.S. prices were unchanged, and the moves are widely seen as reflecting the weak yen.^[5][6]

The exchange rate makes this concrete. The iPhone 18 Pro, released in September 2026, starts at $1,199 in the U.S. and 219,800 yen (tax included) in Japan. The Bank of Japan’s dollar-yen rate at 17:00 on October 22, 2026 was 157.22-157.24 yen. At that rate, $1,199 is about 188,500 yen, or about 207,400 yen after adding Japan’s 10% consumption tax. The Japanese price is about 12,000 yen higher, which implies pricing at roughly 166.7 yen per dollar when worked back from the pre-tax Japanese price. (U.S. prices exclude state and local sales taxes, so this comparison has limits.)^[7][8][9]

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Android vs iPhone Price Comparison

📱 iPhone prices as of October 23, 2026 (Apple, tax included, base storage)

Prices were checked on Apple’s Japanese website and press releases on October 23, 2026. Carrier prices differ.^[10][7][11]

In other words, despite being able to get sufficient performance with Android at less than half the price, Japanese people deliberately choose expensive iPhones.

From a household budget perspective, Japan's average monthly take-home pay is around 250,000 yen. Even the standard iPhone 17 takes more than 60% of that, and a 219,800 yen iPhone 18 Pro nearly 90%.

While it's extremely rare overseas to "spend an entire month's income on a smartphone," this is considered "normal" in Japan.

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Carrier Installment Sales Strategy

Why can people buy these expensive devices without concern? The main reason lies in carrier installment sales methods.

💡 How Installment Sales Work

• Expressions like "effectively 0 yen" or "monthly payments from X thousand yen"
• Sales methods without installment fees
• Cashback and discounts when switching carriers
• "Device purchase programs" that waive the remaining payments if you return the phone after one or two years

These tactics make people perceive a 200,000 yen product as "monthly payments of 3,000 yen." Apple itself lists the iPhone 18 Pro as "from 6,105 yen a month over 36 payments."^[7]

From a behavioral economics perspective, "price partitioning illusion" works, reducing psychological burden. Note also that what you pay under a return-based program is closer to a rental fee for a fixed period than to the price of owning the phone.

🎯 Realistic Comparison: When thinking calmly, 10 iPhones could buy a light car, but many people don't realize this reality.

📏 Handset discount rules (as of October 2026)

Carrier discounts are subject to government rules.

• Under a Ministry of Internal Affairs and Communications (MIC) ordinance revision, from December 2023 the cap on handset discounts has in principle been 40,000 yen (50% of the price for devices costing 40,000-80,000 yen, and 20,000 yen for devices costing 40,000 yen or less). So-called "white-ROM discounts" given when a phone is bought together with a service contract also count toward the cap.^[12]
• Because overestimating a phone’s "residual value" in return-based programs could be used to get around the discount cap, a rule introduced in December 2024 requires residual-value rates to be calculated from used-phone buyback data published by RMJ, the used-mobile industry association.^[13]
• In 2026, an MIC expert committee has been reviewing this residual-value rule and how to deal with "hopping," where people repeatedly sign up and cancel early to collect perks. Its June 24 draft report ("Torimatome 2026") says it is appropriate to avoid immediately abolishing the discount regulation (Article 27-3 of the Telecommunications Business Act) at this point. As of October 23, 2026, we could not confirm the final revisions to the residual-value rule.^[13]

Behind every "effectively X yen" offer are the discount cap, return conditions and residual-value estimates. Check not only the advertised monthly amount but also the total cost and what you would still owe if you kept the phone.

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Psychological and Social Psychological Background

1. Conformity Pressure

Japan is a society with strong conformity pressure.

If friends and colleagues all have iPhones, anxiety arises about being "left out" without the same device. This psychology works particularly strongly among students and young people.

2. Status Consumption

This is the behavior of "demonstrating one's value by owning brand items."

Even as incomes stagnate, the "at least have the latest iPhone for my smartphone" luxury mentality has spread.

3. Loss Aversion Bias

Android has diverse models, including some with inferior performance.

Meanwhile, iPhones offer strong reassurance that "no matter which one you choose, you won't fail." Since Japanese people have a cultural tendency to avoid failure, the safe iPhone choice is preferred.

4. Normative Influence

Cultural conformity of "feeling safe because everyone has one."

In collectivist societies, homogeneity itself creates comfort.

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Is iPhone Really Necessary for Life?

When thinking calmly, daily life usage consists of SNS, video viewing, email, and LINE.

While Android devices in the 30,000 yen range can handle these tasks sufficiently, choosing an iPhone costing 150,000 yen to over 200,000 yen raises cost-performance questions.

💻 Comparison with Computers

Computers have become more expensive too. As of October 23, 2026, the MacBook Air starts at 224,800 yen on Apple’s Japanese store.^[14]

Even so, compared with an iPhone 18 Pro at nearly the same price (from 219,800 yen), a computer offers dramatically better efficiency for work and study and is often used for longer than a smartphone. Yet people don't hesitate to "spend 200,000 yen on a smartphone."

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Why iPhone Still Gets Support

Finally, organizing why people are so drawn to iPhones:

✅ iPhone's Appeal

• Brand image and ownership satisfaction
• Simplicity of operation and reassurance
• Sense of unity with surroundings
• Rich services and accessories
• Strong resale value, making trade-ins and used sales easier

In other words, psychological comfort and social recognition are prioritized over economic rationality.

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Conclusion: Taking a Step Beyond Thoughtless Consumption

Japanese people continuing to buy expensive iPhones could be called "thoughtless consumption behavior" rather than rational choice.

Of course, iPhones have appeal and are excellent as daily-use devices. However, it's important to pause and consider "is it really necessary for life?" and "isn't it beyond one's means?"

🎯 Considering Alternatives

Options include regularly replacing affordable Android devices or investing in computers to improve productivity.

♻️ Used and refurbished phones

As new phones get pricier, more people are buying used. According to MM Research Institute, used smartphone sales in Japan reached 3.607 million units in FY2025 (up 12.4% year on year), a record for the seventh straight year. Used phones made up 10.3% of new and used units combined, and sales are forecast to grow to 3.96 million units in FY2026. Reasons cited include demand for cheaper phones amid the weak yen and rising prices, and strong sales of carrier-certified used phones.^[15]

Apple itself sells refurbished iPhones in Japan. When checked on October 23, 2026, refurbished iPhone 15 Pro and Pro Max models started at 151,800 yen. Stock and prices change over time.^[16]

For new phones, MM Research Institute forecasts that domestic smartphone shipments will fall 7% in FY2026, expecting rising memory prices driven by AI demand to be passed on to device prices.^[3] "How to get hold of an expensive iPhone" looks set to become an even harder question.

What's important is not being swept away by social conformity or carriers' clever mechanisms, but making optimal choices for one's own life, isn't it?

References

1. [1]Statcounter: worldwide mobile OS market share (September 2026, share of web traffic, retrieved October 23, 2026). ↩
2. [2]Statcounter: mobile OS market share in Japan (September 2026, share of web traffic, retrieved October 23, 2026). ↩
3. [3]MM Research Institute: FY2025 domestic mobile handset shipments (May 14, 2026). ↩
4. [4]MMD Labo: August 2026 smartphone OS share survey (September 17, 2026). ↩
5. [5]MacRumors: Apple Raises iPhone Prices in Japan (July 17, 2026). ↩
6. [6]Mac Otakara: September 2026 iPhone price revision in Japan (September 10, 2026). ↩
7. [7]Apple Japan: iPhone 18 Pro and iPhone 18 Pro Max announcement (September 9, 2026). ↩
8. [8]Apple: Apple debuts iPhone 18 Pro and iPhone 18 Pro Max (U.S. pricing). ↩
9. [9]Bank of Japan: foreign exchange rates (October 22, 2026). ↩
10. [10]Apple Japan: Buy iPhone (checked October 23, 2026). ↩
11. [11]Apple Japan: iPhone Duo announcement (September 9, 2026). ↩
12. [12]MIC: overview of the 2023 ordinance revision on handset discounts (November 2023). ↩
13. [13]MIC: expert committee draft report "Torimatome 2026" (June 24, 2026). ↩
14. [14]Apple Japan: Buy MacBook Air (checked October 23, 2026). ↩
15. [15]MM Research Institute: used smartphone sales hit a record 3.607 million units (July 9, 2026). ↩
16. [16]Apple Japan: refurbished iPhone (checked October 23, 2026). ↩