The struggling company, which has lost $15 billion in two years, has staked the entire company on turnaround efforts. The company is trying to move from consumer gadget maker to supplier.
As part of the plan, President Kazuhiro Tsuga says he would cut out any division that cannot meet a 5 percent operating margin minimum within three years.
Tsuga says the mobile division was likely to lose $11.02 million this year, following an $80 million loss last fiscal year. In 2001, the company had 19 percent of Japan's mobile market share. That share is now down to 7 percent. "It's not acceptable for the company to be bleeding red ink like this, so we have to think about ways to develop assets that we do have in a more effective direction," Tsuga added.
Despite exiting the consumer smartphone market, Tsuga says the company will develop enterprise smartphones similar to the "Toughbook" laptop PCs.
Written by: Andre Yoskowitz @ 5 Sep 2013 12:00