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 2:04:58 PM
I'd never heard of their phones either.
“So far we have not seen a single Android device that does not infringe on our patents." -- Microsoft General Counsel Brad Smith
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
Retiree Sues Apple For $7,500 for Wiping Honeymoon Photos From His iPhone
November 30, 2015, 10:23 AM
iPhone 7 May Pack 3-4 GB Memory, More Storage; 4-Inch Comeback is Rumored
November 20, 2015, 10:12 PM
OnePlus One, OnePlus 2 Will Receive Android Marshmallow in Q1 2016
November 16, 2015, 9:58 AM
Lenovo Whoa: Motorola Droid MAXX 2 and Turbo 2 Break Cover in Leaks
October 26, 2015, 3:12 PM
Leak: Apple Preps for First Real Android App Foray With New Apple Music App
October 24, 2015, 1:59 PM
Pepsi Smartphone? Empty Calories Coming Soon to the Midrange
October 12, 2015, 11:41 PM
Latest Blog Posts
Sceptre Airs 27", 120 Hz. 1080p Monitor/HDTV w/ 5 ms Response Time for $220
Dec 3, 2014, 10:32 PM
Costco Gives Employees Thanksgiving Off; Wal-Mart Leads "Black Thursday" Charge
Oct 29, 2014, 9:57 PM
"Bear Selfies" Fad Could Turn Deadly, Warn Nevada Wildlife Officials
Oct 28, 2014, 12:00 PM
The Surface Mini That Was Never Released Gets "Hands On" Treatment
Sep 26, 2014, 8:22 AM
ISIS Imposes Ban on Teaching Evolution in Iraq
Sep 17, 2014, 5:22 PM
More Blog Posts
Copyright 2016 DailyTech LLC. -
Terms, Conditions & Privacy Information