Nokia giving up on Japan market

Thursday, 27 November 2008 08:43

The world's leading mobile phone maker Nokia says it will stop selling and marketing its mobile devices in Japan because its market share there remains below expectations.

But sales of the Vertu luxury mobile phones, a brand owned by Nokia, will continue in Japan, the Finnish company said. Its global research and development as well as sourcing operations in Japan will also continue.

'In Japan we have had a low market share, below our own targets also. We have been investing in the market for a long time, but we are still in that situation,' said Thomas Joensson, communications executive vice president.

He added that Nokia continued to believe its exclusive Vertu brand would succeed in the Japanese niche market segment despite the global financial turmoil. Vertu makes expensive handsets that are often embellished with titanium, gold, jewels and crystal.

In October Nokia said it estimated its global market share in July-September was 38%. The Finnish firm has done very well in emerging markets such as China and India, but has failed to attract Japanese consumers. Handsets designed by foreign manufacturers have traditionally been unpopular among Japan's notoriously finicky consumers.

Many consumers are accustomed to Japanese-made mobile telephones, which are also widely used as electronic wallets, train tickets, and even to watch television.