NEC has announced plans to exit the smartphone market, in order to focus more on its Social Solutions business. It will continue to support existing smartphones on the market as well as make conventional mobile phones, through its unit NEC Saitama. It will also still make tablets.
The decision is due to the increasingly competitive smartphone market, where the Japanese manufacturer faces declining sales and a lack of scale, even after acquiring the Casio business. The Japanese company was earlier in talks for a possible joint venture with Lenovo for smartphones, but could not reach a final agreement.
Staff at NEC Casio Mobile Communications will be redeployed elsewhere in the company, focusing on the Social Solutions Business. The company said it's still assessing the financial impact of the strategy decision.
