Apple finding it difficult to crack Japanese cell phone market

Apple's iPhone, a runaway success in the US and parts of Europe, is struggling to see similar success in Japan, where consumers who've long been privy to some of the world's most advance cell phones are passing over the touchscreen handset for cheaper and more familiar offerings.

After selling about 200,000 units during the first two months, sales of the iPhone 3G have fallen to a third of what they were immediately following launch, according to the Wall Street Journal. Analysts now believe Apple will be hard pressed to sell 500,000 units, a far cry from their 1 million unit predictions earlier in the year.

Part of the problem is that Apple and its exclusive Japanese carrier Softbank are marketing the handset at high prices and touting features such as 3G internet access. While 3G access is relatively new for US customers, the technology has been a staple on Japanese cell phones for years.