Panasonic finally waves the white flag in mobile

The company's president says its performance in the mobile space is "not acceptable."

The Panasonic Eluga.
Stephen Shankland/CNET

Panasonic's troubled mobile division that tried and failed to appeal to smartphone buyers is on the way out.

Kazuhiro Tsuga, Panasonic's president, told Reuters in an interview published Wednesday that the company's mobile division will no longer produce consumer-focused smartphones. Panasonic will, however, continue to deliver smartphones for business use.

Speaking to Reuters, Tsuga said his company's performance in the consumer smartphone market is "not acceptable," adding that Panasonic needs to find ways to improve its operation. The company expects its mobile division to lose over $11 million during the current fiscal year.

That Panasonic is leaving the consumer smartphone market doesn't come as much of a surprise. The company last year unveiled its ill-fated "Eluga" line of consumer-focused smartphones aimed at reviving its ailing operation.