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Mitsubishi Electronics leaving mobile phone market
Mitsubishi Electronics, the giant Japanese manufacturing conglomerate, has announced that it will be exiting the mobile phone market due to heavy business losses in this market space. The company indicated that it expects to have a one-time pre-tax loss of about 17 billion yen ($164.1 million) in the current business year ending March 31 as a result of the withdrawal. It did indicate, though, that this loss will likely be offset by its operations from its other businesses.
Mitsubishi Electric also announced that it anticipates 100 billion yen in sales from its cell phone operations in its current business year as well as shipment of 2.1 million units. According to research firm IDC data, these numbers are shy of 0.2 percent of total global mobile phone shipments for the calendar year 2007.
Mitsubishi Electric's decision to exit the mobile phone market follows an announcement by Sanyo Electric Ltd. just last month that it would sell its loss-making mobile phone business to Kyocera Corporation.