Finnish handset-maker Nokia has pull out of the Japanese market, forfeiting its tiny slice of a dwindling market as it refocuses efforts during the global financial crisis.

Nokia will stop selling phones and end marketing activities in Japan but will continue to sell its ultra-high-end Vertu phones.

Nokia started selling mobiles in Japan in 1994, but its market share is about 1 percent.

The Japanese market is mature, dominated by local manufacturers and carriers led by Sharp, the consumer electronics company. Customers also have little desire to upgrade and replace their devices.

Mobile sales in Japan have been falling since last year, when network operators led by NTT DoCoMo cut their subsidies on certain handsets, making consumers pay more for new handsets.

Nokia suffered from consumers buying fewer phones in the global economic downturn, and earlier this month issued a profit warning and said it expected handset sales worldwide to fall in 2009 compared with 2008.

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