Economic depression has started showing its effects in Asia as well, since just yesterday Japanese electronics group Toshiba announced that it plans on ending the production of mobile phones in Japan, according to Reuters.
The production will end in October and Toshiba will outsource to other countries and manufacturers, in an attempt to cut costs. The cause of this decision is the decreasing demand for the company’s products, as Toshiba sold 50% less in the last financial year, registering its first annual operating loss in 5 years.
Right now, Toshiba is Japan’s sixth handset maker with a 7% market share and the company announced that it’ll continue to make smartphones in China, focusing on this segment. The outsourcing will help the handset maker cut $47 million in annual costs.