Samsung Mulls Exit From Japanese Smartphone Market After Dismal Galaxy Note Edge Sales

The road to recovery is never easy, and after recently restructuring its business operations due in large part to disappointing Galaxy S5 device sales, Samsung is thinking about withdrawing from the Japanese market if sales of its Galaxy Note Edge don't improve. Pulling out would be a big disappointment for Samsung, which chose Japan as the Galaxy Note Edge's first dance partner.

Samsung's intent was to build a bigger presence in Japan, a territory where premium devices tend to thrive. According to Business Korea, there is no bigger market than Japan for premium gadgets. Be that as it may, the Galaxy Note Edge just hasn't caught on with the country's populace.

Samsung Galaxy Note Edge

Just the opposite, it's being reported that Samsung's Galaxy Note Edge sales only scaled to tens of thousands of units within the first four months after launch. That's not the kind of demand Samsung had in mind, though it doesn't necessarily mean there's anything wrong with Galaxy Note Edge. Japan has traditionally favored homegrown products, which has made it difficult for foreign companies to come in and gain significant market share.

At last count (December of last year), Samsung's stake in Japan's smartphone market was just 4 percent, putting the company in sixth place. Apple, on the other hand, is riding the success of its iPhone 6 and iPhone 6 Plus, and accounts for 30 percent of the market.

This wouldn't be the first time Samsung pulled out of Japan -- the company also yanked its TV business from Japan in 2007, one year after becoming the world's top ranked TV maker.