Apple CEO Tim Cook arrived in Japan on September 23, 2025, marking his first official visit since December 2022. During this trip, Cook is expected to visit the newly renovated Apple Store located in Tokyo's Ginza shopping district. This visit occurs amid a sensitive period for Apple's operations in Japan.
Nikkei reports that Japan's new Mobile Software Competition Act will take effect on December 18. The legislation aims to promote external company participation and enhance market competition in smartphone app distribution and payment sectors.
The new law imposes restrictions on the business models of both Apple and Google, prompting strong opposition from Apple. The company has raised concerns that the regulations could create security risks.
Both Apple and Google are likely to comply with the law by revising contract terms with app developers and other partners while continuing negotiations with Japan's Fair Trade Commission.
From a medium- to long-term perspective, Japan's influence within Apple's existing business is waning. Due to the depreciation of the Japanese yen, sales revenue from the Japanese market now accounts for only about 6-8% of Apple's total.
Moreover, the number of Apple suppliers based in Japan is decreasing. While Apple once had nearly a thousand Japanese iPhone supply chain companies, South Korean and Chinese suppliers have rapidly risen. Key components such as displays have already been replaced by South Korean manufacturers.
In the mobile device camera lens sector, specifically CMOS image sensors (CIS), Apple primarily sources from Sony, the global leader in CIS market share. However, Apple has publicly announced plans to procure some iPhone semiconductors from Samsung Electronics' factory in Texas. Sony, which lacks CIS factories in the US, is striving to maintain its position in Apple's CIS supply chain through technological innovation.
The shift of iPhone assembly to India presents another challenge. With a lack of foundational Japanese suppliers in India, there is an increased risk that these suppliers may be excluded from the supply chain.
For Apple, Japan's importance in both sales and manufacturing continues to decline, and this trend appears difficult to reverse.
Article translated by Charlene Chen and edited by Joseph Chen
