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This #1 position for the iPhone is nice, but it's only a temporary spot, although it does show that there are people in Japan buying iPhones. It shows the iPhone is not a complete failure in Japan. I'm sure sales numbers aren't as high as in other countries, but the Japan market is a tough nut to crack. The Japanese do not "hate" the iPhone. The iPhone had helped Softbank to grab a higher percentage of new subscribers than the other two much larger carriers.
However, those cellphones that most of you think are so great would not appeal to people in the U.S. even if they could afford to buy them unlocked. There's no eWallet infrastructure or 1Seg broadcasting in the U.S. OLED displays are just starting to get here and they hadn't been cheap before the Zune HD. As far as those high megapixel cameras go, Nokia can easily surpass the Japanese models. The user interfaces are not all that good.
So hate or not, it really doesn't matter. The iPhone is doing OK in Japan and that's about as much to be hoped for considering all the obstacles in such a closed country where people still wear warazoni, geta and use wooden masu to drink sake from. There's just something unusual about the Japanese culture that they're unable to leave the past behind.