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That. Japan uses a lot of weird proprietary technology which tends not to be well-supported by international brands. It's not that Japanese consumers are luddites, but that they demand a unique set of features. The iPhone has done relatively well, mainly due to fashion, but Android adoption has been very slow. The Android market in Japan is dominated by local brands like Sony and Sharp, who produce handsets specifically for the domestic market.
Mobile data is relatively expensive in Japan (partly due to the dominance of the old monopoly NTT, partly due to the difficulty of providing good coverage in a country with such an unevenly-distributed population), which has slowed the adoption of modern web technologies; The Japanese mobile internet is still dominated by i-Mode services, which are very bandwidth-efficient.
To give a couple of examples of the Galapagos effect:
Japan has a very well-developed mobile TV system. Most of their featurephones have a 1seg receiver, which allows you to watch live TV on your phone. Because it's a broadcast system, coverage is excellent and it works well in crowded areas where 3G bandwidth would be too saturated for streaming, or on fast trains where 3G would break up.
Contactless technology is ubiquitous in Japan and works in nearly all shops, on vending machines and on public transport; It's also used for things like library cards and workplace identity passes. Their contactless system isn't compatible with NFC and so only works with Japanese phones.