I live in Japan. I have an iPhone. I speak/read/write Japanese, but my primary language is English. Here's how I store Japanese people in my address book in iPhone.
- First Name: family name (since this is used first by Japanese)
- Last Name: personal name
- Phonetic First Name: family name in kanji
- Phonetic Last Name: personal name in kanji


With this method, the Japanese name is visible in kanji in the main contacts list, but is listed alphabetically by the romaji version of their name.