The Apple iPhone is a wonderful device and even the tech-spoiled Japanese are impressed by its slimness and it's multi-touch screen, but that's about it. The iPhone is not 3G, and though watching TV on it is possible, you can't pay for a train ticket or buy food with it. If you're a Japanese guy living the tech life in Tokyo, a tech-anemic device such as the iPhone, though beautiful, just would not do.
An American blogger says a former college roomie in Tokyo has his eye on the new Sony Ericsson SO903iTV Bravia Phone. This phone, like most Japanese phones, does not need to be near a Wi-Fi hot spot to receive TV and browse the Internet. Specs include a three-inch screen and 3 megapixel camera and this phone even has TiVo-like TV viewing.
From the comments on the post, the iPhone may take a huge bite out of the Asian handset market come 2008 but it's going to be limited to the Chinese and Southeast Asian markets. The iPhone needs to work up its charms to have any chance in Japan and Korea.
First read at Slashphone.