Nokia "refocuses" in Japan - don't call it a pull out

By Nick Mansell on Thu 27 November 2008

They don't call it a global credit crunch for nothing. Nokia, the world's biggest phone manufacturer is pulling out of Japan, the world's most phone crazed nation.

In a statement today, Executive Vice President, Timo Ihamuotila said: "In the current global economic climate, we have concluded that the continuation of our investment in Japan-specific product variants is no longer sustainable."

With the likes of Sharp, Casio, Fujitsu and Panasonic dominating the best sellers list in Japan, it's no wonder Nokia's been feeling the heat. In fact, not one of its handsets made it into last year's top ten, which might say something about how far the West is behind cellular developments in the land of the rising sun.

There is one market where Nokia is staying put in Japan and that's the high-roller sector catered for by its highly encrusted yet low-end Vertu range. Enough fools and their money over in Japan it seems.

Press release

Nokia to refocus its Japanese operations
November 27, 2008 - NokiaPressServices, Tags: Japan

As part of its effort to sharpen its business focus and priorities, Nokia will discontinue mobile device sales and marketing activities in Japan. Vertu, Nokia’s line of luxury mobile devices will continue with strong focus on the Japanese market. Nokia substantial global R&D and sourcing operations in Japan will also continue unaffected.

“In the current global economic climate, we have concluded that the continuation of our investment in Japan-specific product variants is no longer sustainable. Moving forward, in Japan, Nokia will concentrate on global R&D activities, focused opportunities like Vertu, as well as further development of Nokia’s sourcing activities,” said Timo Ihamuotila, Executive Vice President, Nokia. 

These plans will impact approximately 10% of Nokia Japan employees. 

Global R&D, Sourcing and Vertu activities to continue

In Japan, Nokia has an important R&D center, which plays an integral part in Nokia’s global product development. These global R&D activities will continue unchanged. Nokia will also continue its significant sourcing activities in Japan. Japanese manufacturers are important partners who play a critical role in Nokia’s global supply-chain strategy and with whom Nokia continues to develop its world class logistics operations.  

Vertu, Nokia’s exclusive line of handcrafted mobile phones, will also continue operations in Japan.