Nokia to cease handset sales in Japan

Nokia is to stop selling its mobile phones in Japan, except its luxury brand Vertu (pictured). The move comes after the company has struggled to expand its presence in the country.

The company has made the decision despite NTT DoCoMo, Japan’s biggest mobile phone operator, including the new Nokia smartphone in its product line up this month.

Nokia executive Vice President Timo Ihamuotila says the economic downturn means it is no longer sustainable to invest in products for the Japanese market. He adds that the business will now concentrate on research, development and sourcing for the global market.

The Japanese mobile phone market has proved difficult for international mobile handset manufacturers such as Sony Ericsson, Samsung Electronics and LG, as it is dominated by domestic handsets with more advanced applications.

A majority of mobile phones in Japan are part of the 3G network and boast functions such as TV broadcasting and electronic payment options. The Japanese mobile market is close to saturation with 85% phone penetration and retailers see little room for growth.

Nokia holds nearly 40% global market share but according to Japanese newspaper Nikkei the company only took 0.3% of the Japanese market last year.

Latest from Marketing Week

PLEASE SIGN IN OR REGISTER. IT'S FREE, QUICK AND EASY!

Access Marketing Week’s wealth of insight, analysis and inspiration that will help you develop as a marketer and leader.

Register and receive the best content from the only title 100% dedicated to serving marketers' needs.

We’ll ask you just a few questions about what you do and where you work, so we can make Marketing Week more relevant to you.

Register now

THE BEST CONTENT

Our award winning editorial team and columnists will ask the biggest questions about the biggest issues on everything from strategy through to execution to help you navigate the fast moving modern marketing landscape.

THE BIGGEST ISSUES

From the opportunities and challenges of emerging technology to the need for greater effectiveness, from the challenge of measurement to building a marketing team fit for the future, we will be your guide.

PERSONAL AND PROFESSIONAL DEVELOPMENT

Information, inspiration and advice from the marketing world and beyond that will help you develop as a marketer and as a leader.

Dedicated to developing your skills and helping you achieve marketing excellence. Find guidance on leadership, professional development and the latest industry jobs.

Having problems?

Contact us on +44 (0)20 7292 3711 or email subscriptions@marketingweek.com

If you are looking for our Jobs site, please click here