Panasonic drops the mic on its smartphone business

Panasonic may not be a name synonymous with smartphones, but it was making waterproof smartphones before it was cool.

No more though, with Panasonic officially confirming that it is exiting the smartphone market in Japan, and instead will become a contract manufacturer — offering its brand to other manufacturers in emerging markets.

The reason for the exit is the fact that sales within the smartphone division at Panasonic were dismal, with the company’s president, Kazuhiro Tsuga, threatening closure of any division that fails to make a 5 percent operating margin within three years.

According to the company’s last fiscal report, the mobile division was making a sizable loss for the company — with more than 1.1 billion yen ( £7 million) being poured down the drain.

Source: Engadget