Apple Inc. v. Samsung Electronics Co. Ltd. et al

Filing 88

Declaration of Jason Bartlett in Support of #86 MOTION for Preliminary Injunction filed byApple Inc.. (Attachments: #1 Exhibit 1, #2 Exhibit 2, #3 Exhibit 3, #4 Exhibit 4, #5 Exhibit 5, #6 Exhibit 6, #7 Exhibit 7, #8 Exhibit 8, #9 Exhibit 9, #10 Exhibit 10, #11 Exhibit 11, #12 Exhibit 12, #13 Exhibit 13, #14 Exhibit 14, #15 Exhibit 15, #16 Exhibit 16, #17 Exhibit 17, #18 Exhibit 18, #19 Exhibit 19, #20 Exhibit 20, #21 Errata 21, #22 Exhibit 22, #23 Exhibit 23, #24 Exhibit 24, #25 Exhibit 25, #26 Exhibit 26, #27 Exhibit 27, #28 Exhibit 28, #29 Exhibit 29, #30 Exhibit 30, #31 Exhibit 31, #32 Exhibit 32, #33 Exhibit 33, #34 Exhibit 34, #35 Exhibit 35, #36 Exhibit 36, #37 Exhibit 37, #38 Exhibit 38, #39 Exhibit 39, #40 Exhibit 40, #41 Exhibit 41, #42 Exhibit 42, #43 Exhibit 43, #44 Errata 44, #45 Exhibit 45, #46 Exhibit 46, #47 Exhibit 47)(Related document(s) #86 ) (Bartlett, Jason) (Filed on 7/1/2011)

Exhibit 40

Japan's iPad Frenzy Signals a Sea Change - WSJ.com

Page 1 of 3

MAY 27, 2010

Japan's iPad Frenzy Signals a Sea Change
By

TOKYO—The debut of Apple Inc.'s iPad tablet
computer in Japan is generating a level of hype
and excitement rarely seen these days for a new
electronics product in this gadget-loving nation,
underscoring the paucity of buzz-worthy,
homegrown devices.
The steady decline of Japan's electronics industry,
once considered the birthplace for must-have
gadgets, has accelerated in recent years as
consumer electronics newcomers such as Apple,
Amazon.com Inc. and Vizio Inc. have moved in on
the turf with more innovative or cheaper versions
of products first developed in Japan.
All the while, Japanese electronics firms have been
beaten at their own game by deep-pocketed South
Korean conglomerate Samsung Electronics Co.
Hindered by weakened finances and averse to
risk-taking, Japanese companies have relied on
impressive but largely incremental
improvements—thinner, brighter, smaller—to
existing products.
While Japanese companies prioritized hardware
muscle and superior specifications, overseas rivals
emphasized user interface and software to
enhance ease of use.
After already selling more than one million units
in the U.S. since going on sale April 3, the iPad l
aunches Friday in Japan and eight other countries.
Softbank Corp., Apple's exclusive mobile carrier in

Japan for the iPad, stopped accepting reservations
for the device after only three days.
More than a half-dozen Japanese business and
technology magazines ran cover stories about the
iPad's debut, with one declaring in English: "Here
comes the game-changer."
Lines were forming Thursday at Apple stores and
Softbank outlets in Tokyo. Most of the waiting
customers had already reserved an iPad a few
weeks earlier, but they were willing to wait
overnight to get the device as soon as the doors
open.
"Japanese products are very capable and powerful,
but they don't have the same charm as ones made
by Apple," said 21-year-old college student
Kazuto Ishimura, who was the third customer on
line outside the Apple store in the upscale Ginza
neighborhood.
While Japanese companies remain major global
players in flat-panel televisions, digital cameras
and videogame systems, they have almost no
presence outside of Japan in personal computers,
mobile phones or home appliances. Conversely,
most foreign electronics brands have had little
success in Japan.
Part of the problem, according to industry
executives and analysts, is a divide between the
needs of Japanese consumers and the rest of the

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6/30/2011

Japan's iPad Frenzy Signals a Sea Change - WSJ.com

world's.

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to do a lot of explaining."
It remains to be seen whether the iPad can sustain
its initial enthusiasm in Japan. Softbank says it is
under strict orders from Apple not to disclose how
many reservations it has accepted or how many
will be distributed Friday. It wouldn't even disclose
whether consumers could buy the iPad on Friday
without a reservation.

Reuters
Takechiyo Yamanaka, seen here May 27, 2010, has
been waiting in line since Wednesday outside
Apple's store in Ginza, Tokyo, to purchase an
iPad. The iPad will be released in Japan on Friday.
In Japan, detail-oriented consumers prefer to buy
Japanese products packed with features and read
thick instruction manuals from cover to cover.
Most buyers outside of Japan expect new products
to be simple and intuitive, and they are less
concerned about a product's point of origin.
"The consumer in Japan thinks very differently
than the global consumer," said Atul Goyal, an
analyst at brokerage firm CLSA. "Once Japanese
companies try to sell things to a global market,
they need to understand how a global consumer
reacts."

Japanese electronics companies Sony Corp. and
NEC Corp. have already expressed interest in
creating similar devices, while Dell Inc. has
unveiled plans for a tablet computer of its own,
but some consumers believe the iPad launch could
be a historic moment for Japan.
In one Twitter exchange, Mitsuru Yoshii, who
works at a music school in Tokyo, sent a message
to Softbank Chief Executive Masayoshi Son saying
that the iPad was the "21st century's black ships."
In response to the historical reference to the U.S.
Naval fleet that opened up Japan to the West in
1853, Mr. Son, who aggressively sought out Apple
to bring the iPhone and now the iPad to the
carrier's network, wrote back: "Indeed!"
Write to Daisuke Wakabayashi at Daisuke.
[e-mail]
ACAP Enabled

Apple's iPhone has proved wrong skeptics who
said the handset wouldn't resonate with
consumers in Japan because it lacked many
uniquely Japanese features. One explanation is
that Apple products have become a brand-name
accessory, the technological equivalent of another
Japanese favorite: a Louis Vuitton bag.
"When you are the first one to get hold of a new
gadget, it's important that people around you
already know a little bit about the product and can
recognize it," said Toshiyuki Ueno, an engineer
and technology consultant, who got an iPad last
month in the U.S. and has a reservation to buy a
3G version in Japan. "When you want to show off
your new gadget, it doesn't quite work if you have

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6/30/2011