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Mitsubishi Electric exits mobile handset biz

Posted: 05 Mar 2008 ?? ?Print Version ?Bookmark and Share

Keywords:mobile handset business? next-generation network? base transceiver stations?

Mitsubishi Electric Corp. will no longer continue its mobile handset business in Japan and will shift resources to the communication-related business and other businesses the company plans to strengthen.

With the restructure, Mitsubishi Electric will strengthen mainly the communication systems group and other communication-related business units.

Partnerships
Mitsubishi Electric will stop launches of new models after the current models supplied to and sold by NTT DoCoMo. However, even after the business restructure, the company said it will continue after-sales-service as well as the recall of D06 lithium batteries (announced in Japan on December 2006). Meanwhile, Diamondtelecom Inc., a mobile phone sales dealer and subsidiary of Mitsubishi Electric, will continue to expand its business.

Mitsubishi Electric will also maintain and further strengthen its partnership with NTT DoCoMo through the communication-related business the company aims to grow into.

Plans
There are several fields that Mitsubishi Electric plans to shift resources from the mobile handset business. These include the communication infrastructure business which involves next-generation network (NGN)-related equipments and base transceiver stations for mobile phones, closed circuit TVs and other security businesses, car multimedia business, factory automation system business, as well as train information management systems business.

Mitsubishi Electric said the decision will cause a temporary loss of approximately $1.64 million (17 billion yen) in income before income taxes for fiscal 2008 but the company expects to absorb the temporary loss with improvements in various fields.

About 600 employees from the mobile handset business including R&D, manufacturing and sales divisions will be repositioned mainly in Mitsubishi Electric's strategic businesses.




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