Nokia to exit Japanese mobile phone market


Nokia, the world’s biggest mobile phone manufacturer, has announced that it will stop selling mobile phones in Japan, the world’s fourth largest market. While it holds a nearly 40 percent global market share, Nokia has only a 0.3 percent share there. It had wanted to reach a goal of double digit share earlier. According to Nokia executive vice president Timo Ihamuotila:

“In the current global economic climate, we have concluded that the continuation of our investment in Japan-specific localized products is no longer sustainable,”

Nokia is not the only foreign company to have struggled against the dominant domestic brands. Part of the challenge is due to the fact that Japanese customers expect features such as TV broadcasting and electronic payment on their phones thanks to the advanced wireless networks already in use there.

Nokia is not completely giving up on Japan though. Its luxury Vertu brand with its gem-encrusted hand-built phones will continue to be sold there.

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