Why is Nokia leaving its Japan market?

nokia leaving japan

Surprising reports last week was the buzz that Nokia has decided stop making phones for the Japan market, the largest in the world.

The world’s largest cell phone maker declared Thursday that it would stop producing cell phones for NTT DoCoMo and Softbank Mobile, but will continue making its Vertu brand, according to a report by Reuters.

Nokia Executive VP Timo Ihamuotil was quoted saying “”In the current global economic climate, we have concluded that the continuation of our investment in Japan-specific localized products is no longer sustainable.”

Though Nokia has a 40 percent worldwide share, the Japan market has been a hard nut to crack, the report said. Some 85 percent of the populace already owns cell phones, which tend to be part of third-generation networks that sport advanced features, such as TV broadcasting and electronic payment functions, according to the report.

Even Apple’s iPhone 3G has had trouble penetrating in the Japanese market for not having enough gimmicks, so you know a more serious tech company like Nokia is going to have difficulty.