As Panasonic Corp. calls it quits with phone distributor NTT DoCoMo, the technology company is now making final plans to pull out smartphones in the Japanese market. Beginning this winter, there will be no more supplying of smartphones through DoCoMo. However, distribution of specialized models will still continue for corporate users in the foreign market.
An announcement was made early this month that Panasonic intends to part ways with the leading phone distributor in Japan. According to Panasonic, the marketing strategy of DoCoMo is putting the company’s smartphones at disadvantage, not to mention that it is already behind sales compared to other smartphone makers like Samsung and Sony. Both are offering considerable discounts through DoCoMo, giving the smartphone makers potential increase in sales. Meanwhile, Panasonic’s sales have declined by more than 5 billion yen (approx. $51.2 million) beginning in the April to June period. Panasonic is now looking for buyers that will take over the company’s base stations. It is also considering Nokia as potential buyer. The company’s phone production will end by March 2014.
Panasonic is not the first company that has decided to end smartphone business. NEC announced last month that it will end theirs, from development and manufacturing to marketing. Also in the second quarter of the year, NEC suffered losses about four times more than Panasonic did. With Japan’s ever-demanding phone market, both were not just able to keep up.