Get the free version of Marbridge Daily delivered to your inbox

Click here to subscribe

Kyocera Quits China Market

CCID, 1/30/08

Kyocera announced January 30 that it is pulling out of the Chinese mobile handset market. In 2001 Kyocera and Zhenhua Technology (000733.SZ) formed a joint venture, Kyocera Zhenhua Communication Equipment, to manufacture and sell mobile phones in China.

The joint venture's products focused on high-end camera and music phones, but competition from cheaper handsets meant poor sales. Attempts to rescue the situation with the launch of low-end phones failed due to the use of 3G standards - only 100,000 were sold in 2007.

At the end of March Kyocera will transfer its shares in the joint venture to Zhenhua and another Hong Kong-based firm at no cost, and also waive rights to RMB 57.6 mln in debts. Kyocera will then concentrate on the North American market.

Keywords: Kyocera withdraw Zhenhua Kyocera Zhenhua Communication Equipment mobile phone JV camera phone feature phone 3G low-end music wireless 000733.SZ

Marbridge Daily Premium

Interested in gaining full access to all newsletter articles and the Marbridge Daily archive? To learn more about premium subscription options, including pricing, please:

Click here

Marbridge Consulting RSS Feed

Marbridge Reports