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2025-01-16
In the world of tech giants and visionary entrepreneurs, few stories are as captivating as the tale of Masayoshi Son’s $17 billion gamble on the iPhone. Known simply as “Masa,” the SoftBank founder and Japanese billionaire is a man of extraordinary foresight and audacity. His story is one of resilience, risk-taking, and the power of a handshake agreement with one of the most iconic figures in tech history: Steve Jobs. This is the story of how Masa’s intuition and Jobs’ trust reshaped the mobile industry in Japan and beyond.
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The Rise, Fall, and Rise Again of Masayoshi Son
Masayoshi Son is a name that may not ring a bell for many in the U.S., but his impact on the global tech landscape is undeniable. Once the richest man in the world—albeit for just three days—Son’s fortunes took a dramatic hit during the dotcom crash of the early 2000s. However, his ability to bounce back is a testament to his visionary mindset. Over the past two decades, he has become the world’s most prolific investor, orchestrating deals worth over a trillion dollars. Yet, one of his most pivotal moments came in 2005, when he bet $17 billion on a hunch and a handshake with Steve Jobs.
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The iPhone Revelation: A Sketch That Changed Everything
In the summer of 2005, Masa visited California and met with Steve Jobs. Armed with a sketch of a mobile-enabled iPod featuring a large display and running Apple’s operating system, Masa pitched his vision of a device that could process data and images seamlessly. Jobs, ever the perfectionist, dismissed the sketch with his trademark bluntness: “Masa, don’t give me your shitty drawing. I have my own.” But behind the brusque response, Masa sensed something more. Jobs’ subtle smile and cryptic hints were enough to convince him that Apple was already working on a revolutionary device: the iPhone.
Masa pressed further, securing a follow-up meeting at Jobs’ Palo Alto home. There, he claims, Jobs agreed in principle to grant SoftBank exclusive rights to distribute the iPhone in Japan. “Well, Masa, you are crazy,” Jobs reportedly said. “We have not talked to anybody, but you came to see me first. I’ll give it to you.” For Masa, Jobs’ word was enough. He immediately orchestrated SoftBank’s acquisition of Vodafone Japan for $17 billion, positioning the company to capitalize on the iPhone’s impending launch.
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The Bet That Paid Off
When the iPhone 3G launched in 2008, SoftBank’s exclusive distribution rights in Japan proved to be a game-changer. The iPhone’s compatibility with local networks and its groundbreaking features catapulted SoftBank to the forefront of Japan’s mobile industry. Masa’s $17 billion gamble paid off in spades, solidifying his reputation as a visionary investor and cementing the iPhone’s dominance in one of the world’s most tech-savvy markets.
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What Undercode Say:
Masayoshi Son’s story is a masterclass in intuition, risk-taking, and the power of relationships in the tech world. His ability to read between the lines of Steve Jobs’ cryptic remarks and act decisively underscores the importance of vision in entrepreneurship. But beyond the personal triumph, this tale highlights several key lessons for businesses and investors alike:
1. The Power of First-Mover Advantage: Masa’s early recognition of the iPhone’s potential allowed him to secure a deal that competitors could only dream of. In the fast-paced tech industry, being first often means being ahead.
2. Trust and Handshake Agreements: In an era of contracts and legal formalities, the trust between Masa and Jobs is a reminder that personal relationships still matter. Jobs’ willingness to honor a verbal agreement speaks volumes about his respect for Masa’s vision.
3. Resilience and Reinvention: Masa’s journey from losing most of his wealth during the dotcom crash to becoming the world’s biggest investor is a testament to the power of resilience. His ability to pivot and seize new opportunities is a lesson for anyone facing setbacks.
4. The Global Impact of Localized Strategies: SoftBank’s success with the iPhone in Japan demonstrates the importance of tailoring global products to local markets. By understanding the unique needs of Japanese consumers, Masa was able to maximize the iPhone’s appeal.
5. The Role of Intuition in Decision-Making: Masa’s gamble was not based on hard data or market research but on a gut feeling and a sketch. While not every intuition pays off, his story shows that sometimes, the biggest rewards come from trusting your instincts.
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Conclusion
The story of Masayoshi Son and Steve Jobs is more than just a fascinating anecdote in tech history. It’s a reminder of the human element in business—the visionaries who see what others don’t, the risks they take, and the relationships they build along the way. Masa’s $17 billion gamble on the iPhone not only transformed SoftBank’s fortunes but also reshaped the mobile industry in Japan. It’s a testament to the power of intuition, trust, and the relentless pursuit of innovation. In the end, it’s not just about the technology; it’s about the people behind it.
References:
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