Japanese mobile phone company NEC has officially announced that they will stop developing, manufacturing and selling their smartphone line and will only be making their current models to order. The company also reported losses of ¥21.5 billion in the second quarter with net sales remaining flat at ¥640 billion on year.
Rumors were already circulating that NEC will be discontinuing their smartphone line earlier this month when their deal to give Lenovo majority stake in the company fell through. They were banking on the money that was to come in from that deal to help stem the company’s financial difficulties. They will continue to develop and produce their conventional or feature mobile phones as well as operate their existing tablet business. They also have an existing relationship with Lenovo because of their personal computers.
NEC is not a major player in the global mobile phone business but they do enjoy a modest 5% market share in Japan. It is a significant presence in a place that is heavily dominated by the iPhone. Their mobile business is operated by NEC Casio Mobile Communications, the result of a merger in 2010 with Casio Computer and Hitachi. They own 70% of the venture that had net sales of ¥140 billion in the fiscal year that ended March 31. They were also able to ship 2.9 million phones in that same period.
[ via IT World ]
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