31
Jul
NEC-Thumb

Manufacturing smartphones is a competitive game. I'm talking playing StarCraft in South Korea rough. Succeeding in this market is akin to getting into an Ivy League university, then going on to join the NFL. It's not impossible, but neither is becoming president. If you can't handle the heat, get out of the kitchen. It must be too hot for NEC, as they're bowing out of the smartphone market. Given that this was one of their latest models, the news doesn't come as too much of a surprise.

NEC1

To be more specific, the Japanese multinational explained that it is ending the development, manufacturing, and sale of smartphones other than those that are currently available. It will continue to make conventional phones - because those are still a thing - and its tablet business will persevere as well. NEC apparently failed to get other companies to buy its mobile phone business, so it's throwing in the towel. They can't all be victors. Still, that hasn't stopped others from throwing their hats into the ring.

Via: CNET

Source: NEC

Bertel King, Jr.
Born and raised in the rural South, Bertel knows what it's like to live without 4G LTE - or 3G, for that matter. He now lives in the City of Bridges, adjusting to the presence of actual snow. His phone of choice is the HTC One.

  • topgun966

    NEC was in the smartphone business?

    • Pyrotek85

      That was my first thought verbatim. Don't think I've seen them marketed in the US at least.

    • Joshua P.

      Back before the smartphone revolution their phones were pretty damn awesome.

    • http://www.facebook.com/profile.php?id=708741524 Robb Nunya

      That's what I was thinking as well!

    • hyperbolic

      Mostly in Japan.

    • Danny Davis

      Agreed didn't even know they made em.

    • palf91

      It's like Motorola in Japan, no one knows about them outside of their home country.

    • Ivan Milić

      they had good dumbphones, too bad they didn't succeed with smartphones

  • firesoul453

    Now I almsot feel bad about getting the galaxy s4

  • Byron33196

    Marketing is a thing; who knew?

    • darkNiGHTS

      Why would you market your device in a country that you don't sell in? They pretty much only sold in Japan.

      • Byron33196

        Why would you only sell in Japan when there is a much larger global market for cell phones?

        • darkNiGHTS

          Because you would lose money selling globally if you didn't sell enough units? You can't just ship everything from Japan and provide warranty service and English tech support.

          • Byron33196

            By that logic, there would be no global economy. As NEC has learned, it's go big or go home.

          • darkNiGHTS

            What logic are you talking about? I said you would lose money selling globally if you didn't sell a lot of phones in each country. That's not logic, that's a fact.

          • Byron33196

            If you don't sell, you lose money. That is both logic and a fact. It also applies whether you are selling locally or globally. But if you are selling a product locally that people want globally, you are missing out on sales and leaving the market wide open for your competitors. Those competitors will also be selling in your market as well, but will have the advantages of economy of scale which you don't because you only want to sell locally. They'll have lower per unit manufacturing costs, lower per unit marketing costs, etc. This is Economics 101. It appears you and NEC were both playing hooky the day they taught this.

          • darkNiGHTS

            Yes, and I suppose you were missing the day where they said that costs money. Have you bothered looking at NEC's finances? They had a net income of negative net income of about $1.11 billion USD. Not exactly in the position to "go big."

          • Byron33196

            Fine. You Win. Hey Everybody: darkNIGHTS says it costs money to run a business. I had no idea. The companies I've started all ran on pixie dust instead of cash. Like NEC, the thought of securing financing to bolster market competitiveness never occurred to me.

  • GraveUypo

    who?

  • Dude!

    IMBA MARKET GG

  • Major_Pita

    They've been around since the PDA days, shifting to making industrial RF devices.