Panasonic Leaving Consumer Smartphone Market
September 4, 2013 10:14 AM
comment(s) - last by
It will instead outsource production in emerging markets
is backing out of the consumer smartphone market after years of financial losses and the inability to compete with Apple and Samsung.
The company announced that it will no longer make consumer smartphones in the Japanese mobile market, but will instead outsource production in emerging markets. It says it will continue making business phones.
Panasonic President Kazuhiro Tsuga is working to turn the company around, since it has reported $15 billion USD in losses for the last two financial years combined. He said he's getting rid of any unit that is unable to reach a 5 percent operating margin goal within three years.
"It's not acceptable for the company to be bleeding red ink like this, so we have to think about ways to develop assets that we do have in a more effective direction," said Tsuga.
Tsuga said that Panasonic's mobile business was projected to lose more than $11.02 billion USD for the current financial year ending March 2014.
Panasonic was once a big player in mobile. Back in 2001, it was the second-largest handset maker in Japan with over 19 percent of the market.
and Samsung's Android-powered smartphones have largely taken over, making it difficult for any other companies to compete. Last year, Panasonic had 7 percent of Japanese market share while Apple sat at 25 percent.
To make matters worse, Japan's largest carrier -- NTT DoCoMo Inc -- said it would only promote
flagship Xperia smartphone and the Samsung Galaxy during its summer campaign.
Panasonic certainly isn't the only smartphone maker who is having trouble competing with Apple and Samsung. BlackBerry is in the midst of figuring out how it will restructure its business in response to the lack of enthusiasm for its phones. The company's market share has dropped significantly in recent years, and there are talks of BlackBerry going private and
becoming a niche company
while selling off other unspecified subsets. T-Mobile even pulled all of its BlackBerry smartphones off its shelves.
Microsoft and Nokia are trying to battle Apple and Samsung, too. In fact, Microsoft just purchased Nokia's Devices and Services division for
$7.2 billion USD
in an effort to boost Windows Phone.
This article is over a month old, voting and posting comments is disabled
9/4/2013 11:19:18 AM
Well, they were only sold in Japan, and one reason they were struggling was a lack of promotion from carriers...
"This is about the Internet. Everything on the Internet is encrypted. This is not a BlackBerry-only issue. If they can't deal with the Internet, they should shut it off." -- RIM co-CEO Michael Lazaridis
Apple Confirms iPhone Event for September 10
September 3, 2013, 4:48 PM
Microsoft Purchases Nokia's Devices and Services Division for $7.2B
September 3, 2013, 12:00 AM
BlackBerry Board Thinks Company Could Compete as "Niche" Company
September 2, 2013, 12:09 PM
Quick Note: Sony, Panasonic Team for 300GB Optical Disc Format
July 29, 2013, 8:16 AM
Samsung Hopes to Launch Budget Tizen Device in India by November
September 19, 2014, 5:25 PM
Verizon Wireless Wi-Fi Calling Coming Next Year, Company Sees No Rush to Offer Feature
September 19, 2014, 11:45 AM
Quick Note: Toshiba to Restructure PC Business, Cut 900 Jobs Worldwide
September 18, 2014, 1:40 PM
Samsung Galaxy Note 4 U.S. Pre-orders Start Sept 19, Launches Oct 14
September 18, 2014, 10:15 AM
Amazon Releases New and Refreshed Kindle Fire Tablets, Announces Fire OS 4
September 17, 2014, 10:23 PM
Apple Launches iOS 8 for iPads, iPhones
September 17, 2014, 1:54 PM
Most Popular Articles
HTC Preps Nexus 9 With Nvidia K1 64-Bit "Denver" SoC, Android L Onboard
September 10, 2014, 10:21 PM
Dell Announces "World's Thinnest" Tablet: The Venue 8 7000 Series
September 11, 2014, 8:51 AM
Apple iPhone 6, iPhone 6 Plus Reviews Roll In
September 16, 2014, 9:13 PM
Samsung Calls Out “Copycat” Apple for 5.5” iPhone 6 Plus in New Ads
September 14, 2014, 11:06 PM
Confirmed: Next Generation of Windows to Be Announced on September 30
September 15, 2014, 4:43 PM
Latest Blog Posts
ISIS Imposes Ban on Teaching Evolution in Iraq
Sep 17, 2014, 5:22 PM
Space Terrorism is a Looming Threat For the United States
Apr 23, 2014, 7:47 PM
Facebook Aims to Provide Internet to "Every Person in the World" with Drones, Satellites
Apr 1, 2014, 10:20 AM
Retail Mobile Sites Experience Outages in Light of Simplexity's Bankruptcy
Mar 14, 2014, 8:48 AM
Tesla vs. BMW: Who Has the Safer EV?
Feb 1, 2014, 2:56 PM
More Blog Posts
Copyright 2014 DailyTech LLC. -
Terms, Conditions & Privacy Information