Japanese mobile carrier KDDI <9433.T> is working on a deal with Apple to sell the iPhone 5 in Japan, a source familiar with the matter told Reuters.

The Nikkei Business magazine had earlier reported that KDDI would begin selling the iPhone 5 around November, sparking a 12 percent slump in shares of Softbank Corp <9984.T>, until now the sole provider of the iPhone in Japan.

(Reporting by Reiji Murai; Writing by Isabel Reynolds; Editing by Edwina Gibbs)