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3GScottishUser
14th December 2005, 07:55 AM
From Forbes (14/12/2005):

TOKYO (AFX) - NEC Corp will scale back its overseas mobile phone equipment business to cut operating losses, the Nihon Keizai Shimbun reported without citing sources.

The report said the company will stop the development and sale of cheap cellular phone models in China to specialize in high-performance handsets that sell for 30,000 yen or more.

It will also reduce its lineup to 15 models next fiscal year from 30 previously and will cut its sales network to 2,000 stores from 2,500 by closing unprofitable shops to bring down sales and marketing costs.

The report said the company will likely lower its sales goal next year. NEC's middle and low-end models selling for around 15,000 yen account for 40 pct of its handset sales in China.

Meanwhile, NEC will halt new development of third-generation handsets for British telecom provider Hutchison 3G UK because the business no longer appears profitable as price competition heats up, the report added.

http://www.forbes.com/technology/feeds/afx/2005/12/13/afx2390039.html

Hands0n
14th December 2005, 09:03 AM
"........ because the business no longer appears profitable as price competition heats up ......"

Oh dear. Heat in the kitchen too hot for NEC? Poor dears. They really won't be missed, methinks. H3 bet on the wrong puppy with that lot and are doing quite well enough without them, as is the rest of the mobile network operators in the UK. NEC should stick to their home market where the locals are prepared to pay silly prices for what is essentially bargain basement quality stock.

That said, I still like my e606 - but I must be the only person on Planet Earth that does :D

3GScottishUser
14th December 2005, 09:16 AM
I suspect NEC will return in the future with other operators, perhaps with more up-market offerings. The cheaper 3G handsets will probably be mostly made in China by ZTE, Huewai etc.

NEC can still turn out a good value product as the 02 i-mode 343i at just £39 demonstrates.

All things considered I dont think many will fondly look back on the original NEC UMTS line-up (313, 228, 606, 616, 808 & 808Y), yikes - had a 606 and managed to offload it on e-bay for a profit, it was either that or a hammer could have ended its life!! The e338 has been quite well received but I guess it just is'nt viable for NEC to supply this device for 3 UK to sell as a ThreePay model at the right price point.

Au Revoir NEC!!

Hands0n
14th December 2005, 09:34 AM
I realise that its a very personal thing but ..... I've never liked anything much that NEC has done in the handset dept. They seem to just have strange ideas of what one should be like. And as for commonality in their OS! What commonality? They would do well to take several leaves out of Nokia's book. Ask themselves why that organisation is a world beater!

I'd rank NEC's cheapo i-mode in the same category that you rank their UMTS stuff. It is priced to draw in the curious punters and early adopters. But does it have any staying power? Not with that handset it don't - even if it does try to look like an iPod.

The 343i would make a perfectly good door wedge or fly swatter if attached to a piece of bamboo. Use it as a phone? Errrrr, I'd rather not fanks :D

3GScottishUser
14th December 2005, 09:46 AM
I suspect there are quite a few 606's and 808's now wedging doors, that's the most valuable thing those can do!!

The 343i is'nt too terrible at £39, with a VGA camera, large colour screen etc etc. I don't think its a handset designed to do anything other than tempt folks to try i-mode and expect 02 to sell lots to youngsters who I'm sure they will hope will move on to better products. Pretty hard spec to beat at the price though and NEC's GSM kit generally works pretty well!