Reports originating from Japanese publication Nikkei said that Nokia is to close its final operations in Japan at the end of August 2011, following its failure to generate a significant presence in the competitive market. The Finnish giant’s activities in the country have focused on its Vertu premium brand, which has apparently suffered as smartphones have gained popularity in the market. Nokia exited the Japanese mass market late in 2008, after its devices (including Symbian OS smartphones) failed to win market share from products designed specifically for Japan, manufactured by domestic consumer electronics companies. Nokia’s products, which were based on devices from its international portfolio, did not support many of the technologies expected by Japanese consumers, unlike products from the local manufacturers.

With Vertu being something of a niche play at best, it makes some sense for Nokia to end its dalliance with the Japanese market, although with Japan perceived as something of a leader in terms of mobile technologies, Nokia’s failure there could be regarded as something of an embarrassment. Nokia’s exit in 2008 coincided with the start of smartphone growth in Japan, driven by availability of devices including Apple’s iPhone, and with the Japanese operators also supporting Google’s Android platform. This has given an entry point to the market for companies such as Samsung and LG Electronics. Traditionally, the market is dominated by companies such as Sharp, Panasonic and Fujitsu, which have failed to replicate their Japanese success in international markets. Away from the handset business, Nokia Siemens Networks will continue to operate in Japan.