According to Nobi Hayashi, described by Gizmodo as the David Pogue of Japan, while the iPhone is finally coming to his country via the carrier Softbank, it's probably to simple for the Japanese market, lacking things like a good camera, mobile wallet, and LED flashlight:

"It may sell modestly as a smart phone or as an upgraded iPod, but it's not quite cutting it as a competitor in our mobile-based culture."

Proving that while in America we think our technology is cutting edge, in the Far East toys like the iPhone are viewed as just another prehistoric beast.