It seems Apple sold only 200,000 iPhone handsets in July and August, according to a recent WSJ article.
An analyst quotes a relatively high price, lack of TV reception, emoticons, RFID (radio chip allowing Suica-type services) and a Japanese market less prone to online shopping (iTunes App store).
According to market-research firm MM Research Institute, Apple sold about 200,000 phones in Japan in the first two months. Since then, however, demand has been falling steadily, and analysts now widely believe sales are unlikely to reach a total of 500,000 units. That is half the one million units that they previously thought Apple could sell.