NEC Calling it Quits on its Struggling Smartphone Business

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NEC Medias WThe struggling smartphone manufacturer NEC is officially bowing out of the smartphone industry, per an announcement the company made on Wednesday.

In the announcement, NEC said that it will end development, manufacturing, and sales of its smartphones. NEC was adamant that it would continue to support its existing smartphones and plans to continue producing tablets along with conventional mobile phones.

The company’s decision to abandon its smartphone efforts was apparently based on its negative forecast. NEC has struggled lately as shipment orders continue to drop, and the company reported that it saw no improvements in the future. According to Reuters, last quarter NEC listed an operating loss of 9 billion yen ($92 million USD).

Reports indicate that NEC had been attempting to get Lenovo and other companies to buy its mobile phone business. The talks with Lenovo, however, supposedly dissolved over issues regarding majority ownership and patents. 

Source: NEC, Reuters



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