New customers of Japanese carrier NTT Docomo can save $100 via larger carrier subsidies on an iPhone XR over the life of a 24-month contract.
The carrier business model in Japan relies on device subsidies to attract customers, similar to how the US smartphone market used to work. Total installments for iPhone XR 64 GB on a 24 month contract would total 36,000 yen before this announcement. Now, the device cost drops to 24,000 yen (excluding the price of the mandatory contract fees).
It is expected that other Japanese carriers will follow NTT Docomo’s lead. Apple is believed to have given Japanese carriers the OK to more heavily discount iPhone XR models due to less than expected demand for the device in the country.
Although the iPhone dominates the Japanese smartphone market, demand for the latest models was lower than expected. Japanese customers appear to be opting for the still-available older models of the iPhone, such as the iPhone 8 and iPhone 8 Plus.