NEC Reviews Mobile Handset Business
Management resources shift to Social Solutions Business
Tokyo, July 31, 2013 - (JCN Newswire) - NEC Corporation (NEC; TSE: 6701) is
reviewing the mobile phone handset business operated by NEC CASIO Mobile
Communications, Ltd. in order to accelerate its growth strategy focused on the
"Social Solutions Business," which provides advanced social
infrastructure capitalizing on information and communications technologies
Specifically, as of today, NEC is ending the development, manufacturing and
sale of smartphones, other than models already on the market. NEC will continue
providing maintenance and support services for its existing smartphones. NEC
will also continue developing and producing conventional mobile phone handsets.
Furthermore, NEC will utilize NEC Saitama, Ltd. for its Social Solutions
Business, as well as the production of conventional mobile phone handsets for
the Japanese market. Moreover, NEC will continue operating its tablet
As the market for mobile phone handsets, including the rapid spread of
smartphones, has dramatically changed, economies of scale have become
increasingly important for the maintenance and strengthening of
competitiveness. However, NEC's mobile phone handset shipments are
following a downward trend and it is difficult to foresee improved performance
in the future. In light of these circumstances, NEC reached this decision to
review its mobile phone handset business following a comprehensive examination
of the business' direction.
NEC will now strengthen its portfolio management even further, in addition to
focusing management resources on the company's Social Solutions Business.
Going forward, NEC will capitalize on the technologies and know-how acquired
through the development of wireless communications, terminals and human
interfaces for the mobile phone handset business in order to strengthen its
Social Solutions Business. As a result, NEC will reposition NEC CASIO Mobile
Communications employees, except those who continue to engage in business
operations, within the NEC Group, centering on the Social Solutions Business.
NEC is in the process of assessing the impact of this resolution on its
consolidated financial results for the fiscal year ending March 31, 2014. NEC
will report any significant developments on this matter as soon as information
About NEC CASIO Mobile Communications, Inc.
Business Summary: Mobile terminal development, production and maintenance
Capital: 5 billion JPY
Net Sales: approximately 140 billion JPY (2012 fiscal year)
Shipments: 2.9 million units (2012 fiscal year)
Employees: 890 (April 2013)
Share: NEC: 70.74%, CASIO: 20.00%, Hitachi: 9.26%
About NEC Corporation
NEC Corporation (TSE: 6701) is a leader in the integration of IT and network
technologies that benefit businesses and people around the world. By providing
a combination of products and solutions that cross utilize the company's
experience and global resources, NEC's advanced technologies meet the
complex and ever-changing needs of its customers. NEC brings more than 100
years of expertise in technological innovation to empower people, businesses
and society. For more information, visit NEC at http://www.nec.com.
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