Sony Mobile may be only Japan-based handset vendor to survive, say Taiwan makers
Daniel Shen, Taipei; Adam Hwang, DIGITIMES [Thursday 1 August 2013]
Japan-based handset vendor NEC Casio Mobile Communications (NCMC) has decided to withdraw from the global smartphone market due to continued operating losses. Other Japan-based vendors may be forced out of market due to the same reasons, and Sony Mobile Communications is likely to become the only survivor, according to Taiwan-based handset supply chain makers.
NCMC's market share in Japan fell to 5% in the second quarter of 2013, the sources noted. In an attempt to solve its problems, NCMC has negotiated a joint venture handset company with China-based Lenovo but has been unable to reach a consensus, the sources indicated. As a result, NCMC needs to stop developing and marketing smartphones and will concentrate resources on feature phones and tablets, the sources said.
Most Japan-based handset vendors are less competitive in overseas markets, and have been forced to focus on the domestic market, the sources indicated. But they have faced increasing competition from international vendors, including Samsung Electronics, Apple and HTC. Therefore, Japan-based vendors, including Panasonic, Fujitsu, Kyocera and Sharp, are under pressure to adjust their handset business operations and if they are unable to improve, are likely to withdraw from market, the sources said.
However, Sony Mobile is an exception, the sources noted. Having fared well with its Xperia series smartphones in 2013, Sony Mobile shipped a quarterly record of 9.6 million smartphones in the second quarter and is expected to hit its 2013 target shipments of 42 million units, the sources indicated.
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