Mitsubishi has decided to terminate its mobile handset business in Japan, citing a saturated market and declining sales. The company has supplied NTT with mobile phones since 1983 and will continue to provide after-sales support. Its retail chain Diamondtelecom will also remain active. However, no new phone models will be developed once the current range has been delivered. Mitsubishi estimates its mobile phone shipments at 2.1 million in the fiscal year to end-March, generating sales of JPY 100 billion. The shutdown is expected to result in a one-time pretax loss of JPY 17 billion in the current year. The resources of the phone business will be deployed to develop other communications products, such as IP network equipment, base stations, CCTV and security products.
