Toshiba today announced that it will reshape its mobile
phone production system in order to promote effective
utilization of overseas outsourcing.
Implementation of this measure will see Hino Operations,
Toshiba's mobile phone production facility for the
Japanese market, outsource manufacturing to overseas EMS
manufacturers from October 2009. Hino Operations will be
positioned as the headquarters for global production, and
will focus on product control, support of introductions
of new products to EMS manufacturers, and repair and
service activities. Product development and design will
continue at Hino Operations.
Japan's mobile phone market went into steep decline
following the introduction of a new sales system that
raised handset prices and encouraged a long-term
replacement cycle, a decline reinforced by the
contraction in consumer spending resulting from the
current recession. In responding to these new market
conditions, Toshiba has undertaken a comprehensive review
of mobile phone production as an important item under the
Action Programs to Improve Profitability, announced by
the company on January 29, 2009.
Hino's production of mobiles phones for the Japanese
market will be outsourced to EMS manufacturers overseas.
Smartphone production for all markets will continue to be
conducted at Toshiba Information Equipment (Hangzhou)
The approximately 200 employees now engaged in mobile
phone production at Hino will be reassigned within