UPDATE 3-Apple teams up with Softbank to sell iPhone in Japan

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By Sachi Izumi

TOKYO, June 4 (Reuters) - Apple Inc (AAPL.O) will launch its popular iPhone in Japan this year, entering one of the world's most advanced mobile phone markets by teaming up with Softbank Corp (9984.T), the country's aggressive No.3 operator.

The deal, announced by Softbank, is another push forward by the company that has been growing its share with quirky marketing and price cutting since it bought Vodafone Group's (VOD.L) troubled Japan unit in 2006, although it still lags well behind market leaders NTT DoCoMo Inc (9437.T) and KDDI Corp (9433.T).

Apple is widely expected to announce a new generation iPhone next week, with analysts betting it will run on third-generation (3G) mobile networks with their faster Web browsing and data downloads. [ID:nN02319008]

Japan already has 3G networks, and improved capabilities in a new model of iPhone are seen by analysts as crucial for its success with customers who are already very heavy users of mobile email and Web browsing.

DoCoMo, which controls just under half Japan's mobile market, has also sought Apple's much-anticipated gadget for its customers and it was not immediately clear if Softbank would have exclusive sales rights.

"The key question is if the agreement would be exclusive and what kind of (revenue-sharing) agreement Softbank has entered with Apple," Macquarie analyst Nathan Ramler said.

"Apple typically goes with exclusive agreements, so chances are that this will also be exclusive."

Apple's iPod music player is widely used in Japan but some analysts doubt the iPhone will be as popular, given the advanced state of the mobile market.

The device allows Internet access and plays music, but most mobile phones in Japan have those functions and more -- such as TV viewing and video downloads. The iPhone would be a hard-sell especially if the price is high, they say.

"It's very rare that something popular in the U.S. comes to Japan and captures that much demand here," Shinko Securities analyst Tomohiko Okugawa said.

"Japanese consumers tend to stick to what they liked first ... It will need to offer something new and surprising to be a hit in Japan."

Spokesmen for Softbank and Apple Japan said they had no further details on the deal. A DoCoMo spokesman said his company had not heard back from Apple after its iPhone talks.

BOON FOR SOFTBANK

Japan came as one of the last Asian markets where Apple signed deals. In May, the U.S. company announced it would bring the iPhone to Singapore, India, Australia and the Philippines this year. [ID:nL13352355]