Mitsubishi Electric Corp. Withdraws from Mobile Manufacturing Industry

Japanese mobile phone manufacturer Mitsubishi Electric Corp. has decided to stop its mobile phone operation. Japanese mobile phone market has become much more competitive with the presence of some big companies. There are some more companies who are going to withdraw their operations from mobile industry as the carriers are involved in a race to offer the most attractive price for the Japanese market.

Money.cnn reported:

But with the domestic market largely saturated, Japan's carriers are now engaged in an all-out price war and are cutting back on the handouts as profits fall. They are locking users into long-term contracts, and total new phone sales are suffering.

"Carriers are not protecting manufacturers any more," said Shigehiro Tanaka, a director at Japan market research firm BCN.

"There will be more withdrawals moving forward," he added.

Japanese mobile phones have fame throughout the world for the highly advanced technology and style associated with the sets. Mitsubishi Electric Corp still has target to generate 100 billion yen ($962 million) in revenue this fiscal year. The conglomerate will focus on other businesses in order to recover loses of mobile operations. Mitsubishi Electric was ranked 8^th in mobile manufacturing industry in Japan in the last fiscal year.