Nokia admits defeat in Japan

Finnish mobile phone giant Nokia has said it will stop selling its handsets in Japan after struggling to grow its market share in the country.

Nokia said it would continue selling its luxury Vertu brand in Japan, and would dedicate its Japanese business to research purposes.

Nokia has nearly 40% of the global market for mobile phones, but it reportedly managed to take only 0.3% of Japan's market last year.

Samsung and LG have also faced problems in Japan - a market dominated by sophisticated domestic phones.

According to research firm IDC Japan, foreign companies account for only 5% of the Japanese market, which is dominated by local firms selling phones with features such as TV broadcasting and electronic payment functions.

The Nokia-owned luxury brand Vertu was created in 1998 and focuses on one-off specialist phones costing from 3,500 euros to more than 100,000 euros.

Source: BBC