Monday, January 31, 2011

Nokia To Pull Out Of Japan
The world's largest mobile maker, Nokia has announced to stop its operation in Japan as it is unable to expand its presence. The company source on November 27, informed that Nokia will cease the sales of mobile phones in the Japanese market except for its luxury Vertu brand. Although Japan stands out to be one of the fourth largest mobile markets in the world, Nokia failed to attain a respectable market position as it faces stiff competition from Japanese mobile makers. According to industry analysts, Japan offers a limited scope for the mobile phone companies as 85 per cent of the country's population already own a mobile phone.

Apart from it, the annual sales of mobile phones are supposed to decline by 20 percent owing to new sales model of Japan. Talking to media, Nokia executive vice president Timo Ihamuotila stated that Nokia is not in a position to sustain its presence in the Japan-specific localized product markets. However, he informed that Nokia's Japanese business would concentrate on research, development and sourcing for the global market as well as specific projects such as the Vertu brand.
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Japan mobile phone market is ruled by domestic mobile phone companies. Most of the mobile phones used in Japan are part of third-generation networks and boast features such as TV broadcasting and electronic payment functions. As a result, it becomes tougher for foreign manufacturers to compete with domestic handsets. According to IDC Japan, a research firm, Nokia failed to consolidate its position In Japan because the company is facing global earnings problems and many other issues.

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