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
9/5/2013 8:19:20 AM
Who?... I thought they made VCRs...
"Nowadays, security guys break the Mac every single day. Every single day, they come out with a total exploit, your machine can be taken over totally. I dare anybody to do that once a month on the Windows machine." -- Bill Gates
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
Amazon Seeks FAA Permission to Test 50 MPH Flying Drones
July 11, 2014, 12:32 PM
Samsung Fails to Launch its Tizen-based Smartphone in Moscow, Unsure of New Launch Date
July 11, 2014, 9:00 AM
China's Top State-run Broadcaster Considers iOS Tracking Feature is a National Security Threat
July 11, 2014, 8:25 AM
Verizon Wireless Offers Up $100* LG G3, Will Be Available July 17
July 10, 2014, 4:21 PM
Satya Nadella Says Microsoft is a "Productivity and Platform Company" for the Mobile/Cloud World
July 10, 2014, 12:29 PM
Motorola Touts Its Moto 360 Smartwatch in Another Teaser Video
July 10, 2014, 9:26 AM
Most Popular Articles
Apple's iPhone, iPad Update iOS 7.1.2 is Badly Broken for Some
July 8, 2014, 2:00 PM
Despite Legal Threats Google Begins Posting Warnings of ISP Throttling
July 7, 2014, 5:52 PM
Buzz Aldrin Says First Astronauts to Set Foot on Mars Should Never Return Home
July 9, 2014, 9:46 AM
Your Uncharged Smartphone, Tablet May Prevent You from Boarding U.S.-bound Flights
July 6, 2014, 11:11 PM
Samsung Sales, Profit Drops in Q2, Apple Sees Troubling Signs Too
July 8, 2014, 8:18 PM
Latest Blog Posts
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
Justice Leaks Details of Next HTC One Two Flagship Phone
Dec 5, 2013, 4:04 PM
More Blog Posts
Copyright 2014 DailyTech LLC. -
Terms, Conditions & Privacy Information