Apple's iPhone Flops in Japan, Now Sold for Free

Apple's iPhone is a hit everywhere in the world — except for Japan.

It turns out that Apple's video-playing, music-downloading, motion-sensing handset is just too, well, backward for the Japanese market.

In fact, the iPhone is such a flop in the Land of the Rising Sun that it's being given away free with a 2-year contract, Wired News reports.

Adding insult to injury is the fact that carrier charges are a lot cheaper in Japan than they are in the U.S., and Apple hasn't learned to compete.

Few Japanese want to pay $60 per month to use a phone that can't shoot video, receive TV signals or text-message photos.

"The pricing has been completely out of whack with market reality," one expert on the Japanese cell-phone market tells Wired News. "I think they [Apple and its partners overseas] are in the process of adjusting to local conditions."

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