Panasonic to shift mobile handset production abroad: Nikkei

TOKYO Sun Apr 1, 2012 1:01am EDT

Panasonic's logo is seen on a wall of an electronic shop in Tokyo February 3, 2012. Panasonic Corp is likely to forecast a record net annual loss of more than $9.2 billion, local media reported on Friday, as it tallies the cost of trying to fix its broken TV unit and writes down its Sanyo Electric acquisition, joining a trinity of beleaguered Japanese consumer electronic giants. REUTERS/Kim Kyung-Hoon

Panasonic's logo is seen on a wall of an electronic shop in Tokyo February 3, 2012. Panasonic Corp is likely to forecast a record net annual loss of more than $9.2 billion, local media reported on Friday, as it tallies the cost of trying to fix its broken TV unit and writes down its Sanyo Electric acquisition, joining a trinity of beleaguered Japanese consumer electronic giants.

Credit: Reuters/Kim Kyung-Hoon

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TOKYO (Reuters) - Japanese electronics giant Panasonic Corp is expected to shift all production of its mobile phone handsets abroad as early as this summer as it looks to re-enter overseas markets this fiscal year, the Nikkei daily said on Sunday.

Panasonic, which is to post a record loss of 780 billion yen ($9.7 billion) for the business year ended on Saturday, still makes about half of its handsets in Japan and will become the first Japanese maker to produce all of its handsets abroad.

The production shake-up comes after the struggling company named the head of its loss-making TV business, Kazuhiro Tsuga, 55, as its new president in February.

Panasonic sold around 5 million handsets in the just-ended fiscal term, making it the No. 3 domestic manufacturer behind Sharp Corp and Fujitsu Ltd, Nikkei said.

The newspaper said the production from the Shizuoka factory - which accounts for nearly half of the firm's output - will be moved to Beijing and Malaysia and some will be outsourced to overseas manufacturers.

Production of certain domestic models may remain in Japan, it said.

Panasonic pulled out of overseas markets in 2005 but it plans to re-enter them in April, introducing smartphones in Europe, said the newspaper, adding it hopes to triple its unit sales to 15 million by fiscal 2015/16, with 9 million coming from abroad.

(Reporting by Antoni Slodkowski; Editing by Ed Lane)

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Comments (2)
Jeepgirl wrote:
I have not seen any Panasonic phones in the U.S. and hope that they do show up sometime. I like the Panasonic brand as they really seemm to have the quality and lasting components that others do not.

Apr 01, 2012 3:51am EDT  --  Report as abuse
manfromutopia wrote:
Every Panasonic product I have owned went to charity, not in the trash.

Apr 01, 2012 10:49am EDT  --  Report as abuse
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