Panasonic Corp today announced that it is set to leave smartphone market in Japan and offer few outsourced production in emerging markets, including India. The company has suffered $15 billion in losses over its latest two financial years which resulted the step of leaving smartphone market.
In an interview with Reuters, Panasonic President Kazuhiro Tsuga revealed that the company’s mobile division was reported a loss of more than 1.1 billion yen ($11.02 million) in the current financial year. In addition to the current loss, the company was also in loss of 8.1 billion yen last year.
During the interview, Tsuga said;
“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.”
However, the Japan-based Panasonic is set to quit its consumer smartphone business but still it is in plans to continue the development of smartphones for businesses by offering its brand to other vendors. Panasonic was among the three most popular smartphone manufacturers, in addition to NEC Corp and Fujitsu Ltd, in the Japanese market but since the success of Samsung and Apple, the former players lost their shine in the market.
Tsuga certainly announce that Panasonic will no longer be a smartphone manufacturer and will not sell its own smartphones under a vertically integrated business model but instead, focus on selling third-party smartphones in the coming future. The company is already doing the same in India, with its Panasonic P51 flagship smartphone.