For Apple, Next Stop Japan

Updated from 10:50 AM EST

SAN FRANCISCO -- Following much fanfare in Europe's largest consumer markets, Apple (AAPL Quote) is laying the groundwork to launch its iPhone in Asia.

The company is reportedly talking to Japan's top tier telecom carriers about selling its popular multimedia phone for use on their networks. A report by The Wall Street Journal says Apple has approached NTT DoCoMo (DCM Quote), Japan's largest carrier, and Softbank, currently the No. 3 player.

Apple will likely to pursue exclusive deals with these carriers, as it has in the U.S. and Europe, and seek to share the sale and service revenue from each device. The company did not respond to a request for confirmation.

The move would take the iPhone to one of the world's most tech savvy populations. Japanese consumers are avid gadget fans, especially when it comes to pricey multimedia cell phones. Many store credit card and banking information in their phones, which can then be used to make purchases by swiping the phone in front of sensors at cash registers.

The challenge for Apple is to get Japanese consumers, who are used to fast mobile Internet connections, interested in a phone that operates on a slower 2G network.

"Speed is the urgency for multimedia tasks like Web browsing and downloading music," says Jack Gold, telecom market analyst and head of J. Gold Associates. "Anytime you come to market with something that isn't up to peak speeds, it's going to be an issue."