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Toshiba to Stop Mobile Phone Production in Japan
      #33304 - 05/21/09 09:55 AM

Associated Press in Tokyo reports that Toshiba will end its production of mobile phones in Japan due to plummeting demand.

The report says: "Toshiba's global shipments of mobile phones plunged to 3 million units in the last fiscal year from 6 million units the previous year. Toshiba said most of its cell phones were sold in Japan. The company said it will continue to make cell phones at its plant in the eastern Chinese city of Hangzhou. It will also outsource its mobile phone production, but declined to give further details."

"Consumers are reluctant to buy new mobile phone handsets amid an economic downturn. The Japanese mobile phone market was really hit hard by the ongoing economic slump," Toshiba spokeswoman Yuko Sugahara said.

Toshiba said its mobile phone business only accounts for 3 percent of its total operations.

Shares of Toshiba fell 1.9 percent Wednesday to close at 355 yen.




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