Finnish mobile giant Nokia has announced that it is to leave the Japanese mobile 'phone market.

According to CNet, the company will cease its manufacturing agreements with Japanese firms NTT DoCoMo and Softbank Mobile, but keep producing the occasional top-end handset under its Vertu branding.

Executive vice president Timo Ihamuotila said of the move that "in the current economic climate, we have concluded that the continuation of our investment in Japan-specific localised products is no longer sustainable."

Although Nokia enjoys a 40 percent share of the global mobile 'phone market, it has always had a hard time breaking in to the huge Japanese market. With around 85 percent of the Japanese population already possessing home-grown handsets at least as powerful as anything Nokia has to offer, the company has clearly decided to step back and concentrate on markets closer to home.

With that in mind, the company has also announced that it's looking to create a system for home management via smartphone handsets. Dubbed the Nokia Home Control Centre, the technology looks to cash in on the current eco-friendly vibe by promising to help people manage their carbon footprint by remotely monitoring and managing the energy consumption of their home, along with integration with home security systems. The first demonstration of the system is due at the Nokia World event in Barcelona next week.

Do you think that Nokia is doing the right thing moving away from the tough Japanese market, or is the company merely admitting defeat in the face of impressive Japanese technology? Share your thoughts over in the forums.

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