Kyocera Quit Consumer Smartphone Market By 2025

Kyocera quit consumer smartphone market by 2025

Kyocera has announced its decision to exit the consumer smartphone market by March 2025 and refocus its consumer strategy in Japan to align with its business-first approach in North America.

The move comes after the company faced a challenging period, experiencing a JPY 2.27 billion ($16.6 million) loss in February this year.

The decision was made due to the increasing cost of terminals, caused by the spread of the high-speed communication standard ‘5G,’ and the inability to make a profit.

The company has also lost ground to Chinese and Japanese rivals like Xiaomi, OPPO, Sharp and Sony in the Japanese smartphone market, pushing the company to exit the consumer segment. Kyocera President Hideo Tanimoto stated that they could no longer find marketability for the general market.

Kyocera said that it will continue to cater to corporate customers and is looking to maintain its reputation for rugged durability, which is still attractive to many consumers.

Consumers can still purchase the company’s smartphones through carriers such as Verizon, both in-store and online, and through the Kyocera website.

Overall, Kyocera’s decision to exit the consumer smartphone market appears to be driven by high costs and an inability to generate profits. Nevertheless, the company will continue to serve corporate customers while maintaining its reputation for rugged durability in the consumer market.

Speaking on the announcement, President Hideo Tanimoto, Kyocera, explained,

The widespread adoption of high-speed communication standard ‘5G’ will increase terminal costs. We made the decision to withdraw because we were unable to generate a profit under these circumstances.

Source