While Apple has been phenomenally successful in the global mobile market, the company has quite literally struck gold in the Land of the Rising Sun.

apple sign Apple strikes gold in Japan

The Japanese mobile market is already catered to by a lot of players, including the country’s native juggernauts like Sony and Sharp. NEC and Panasonic folded their cards earlier this year and exited the smartphone business altogether. Apple has been performing better than all of them on their home turf, as a new Wall Street Journal report indicates that the company holds 37 percent of the smartphone and 50 percent of the tablet market in Japan.

Furthermore Japan is one of the five regions where Apple saw its operating profit grow in the past fiscal year. Apple is also getting its biggest profit margins from Japan, in fact, its margins in Japan are 15 percent higher than anywhere else in the world. During the past fiscal year, Apple’s sales in the country climbed over 30 percent.

Eiji Mori, an analyst based in Tokyo, suggests that the reason why Apple has struck gold in the country is because of its brand positing. Apparently for Japanese consumers, the brand value of Apple is similar to luxury fashion brands like Burberry and Louis Vuitton. He also adds that for Japanese consumers its not a matter of rationale or specifications, its a matter of “owning an iPhone,” and its that mentality that’s aiding Apple’s growing margins in the country.

Source: The Wall Street Journal