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Business

Exclusive: Japan considers action against Apple

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Business

Exclusive: Japan considers action against Apple

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COMING UP:Exclusive: Japan considers action against Apple

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Transcript

00:00:00
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APPLAUSE
>> Apple's runaway success in Japan has gotten the attention of regulators and not in a good way. A report published last month by Japan's Fair Trade Commission mainly focuses on three Japanese carriers that were refusing to sell older surplus iPhone models to third-party retailers, keeping prices high.
00:00:23
And even though Apple was not named in the report, it may also be implicated. Two government sources told Reuters that regulators were focusing on the company's supply agreements with all three carriers. Apple's contract is said to require surplus stock of older iPhones to be sent to other markets, such as Hong Kong.
00:00:40
Other contractions often result in carriers favoring iPhones over devices from Samsung and other rivals. The iPhone 7 and Samsung Galaxy S7 both sell for the exact same price, but with a contract the price of an iPhone is much lower. Any move by the Japanese government could hit Apples profit margins in one of its leading markets.
00:01:02
Apple accounts for almost one in every two smartphones sold in Japan.