Panasonic to abandon consumer smartphones

Sep 26, 2013
In this file photo, Japan's Panasonic displays a solar panel, produced by Sanyo, at an exhibition in Yokohama, on June 30, 2010. Panasonic and its subsidiary Sanyo have each pleaded guilty to price-fixing involving auto parts and battery cells, agreeing to pay $56.5 million in fines, according to the US Justice Department.

Japanese electronic giant Panasonic said Thursday it will abandon research into new smartphones for retail consumers at home as it struggles to make inroads in a sector dominated by Apple and Samsung.

The move comes two months after competitor NEC said it was pulling out of the market citing tough competition.

"We will suspend developing for the business-to-consumer market in Japan, and instead will pour our business resources into smartphones for the business-to- that is expected to grow," Panasonic said in a statement.

Corporate smartphones are devices used in businesses such as warehouses and hospitals where a number of people have to share up-to-date information across a large area.

Japanese electronics makers have struggled to compete since the rise of smartphones, and have been left behind by US giant Apple and South Korea's Samsung. The two companies' flagship phones have a large share of Japan's smartphone market.

NEC said in July it plans to exit its smartphone business, with chief financial officer Isamu Kawashima saying "we were late to enter the smartphone market, and we were unable to develop attractive products".

In the three months to June, Panasonic booked a net profit of 107.8 billion yen ($1.08 billion), up 742 percent from a year earlier. Operating profit stood at 64.2 billion yen, up 66.3 percent.

However its mobile phone unit Panasonic Mobile Communications booked an operating loss of 5.4 billion yen, despite a 86 percent rise in sales.

Panasonic and its domestic rivals, including Sony and Sharp, have been undergoing painful restructuring aimed at stemming years of record losses largely tied to their electronics units.

Explore further: Alibaba surges in Wall Street debut

add to favorites email to friend print save as pdf

Related Stories

Panasonic's April-June net profit up by 8 fold (Update)

Jul 31, 2013

Japanese consumer electronics giant Panasonic Corp. said Wednesday its quarterly earnings surged more than eight-fold, helped by the weaker yen and a one-time boost from a change in its corporate pension ...

Panasonic's red ink grows, forecasts loss for year

Oct 31, 2012

(AP)—Panasonic Corp.'s losses ballooned to 698 billion yen ($8.7 billion) for the fiscal second quarter as sales plunged in flat-panel TVs, laptops and other gadgets, and restructuring costs to turn itself around were proving ...

Panasonic reports big loss but forecasts profit (Update)

May 10, 2013

Japanese consumer electronics giant Panasonic Corp. on Friday reported a near-record net loss of 754 billion yen ($7.5 billion) for the fiscal year through March due to restructuring costs and slumping sales, ...

NEC swings to annual net profit

Apr 26, 2013

Japan's NEC cast off two straight years of losses Friday, reporting it had returned to the black after a painful restructuring including layoffs and a business overhaul.

Recommended for you

Alibaba makes Wall Street debut

Sep 19, 2014

Alibaba made its long-awaited Wall Street debut Friday on the heels of a record stock offering that opens the door to global expansion for the Chinese online retail giant.

Alibaba IPO to boost employee fortunes to $8 bn

Sep 19, 2014

Employees of Chinese e-commerce giant Alibaba will see their fortunes swell to nearly $8 billion as the company prepares a massive US stock offering that could be valued at $25 billion.

Alibaba mega IPO caps founder Jack Ma success tale

Sep 19, 2014

When Jack Ma founded Alibaba 15 years ago he insisted the e-commerce venture should see itself as competing against Silicon Valley, not other Chinese companies. That bold ambition from a time when China was ...

User comments : 0