Japanese manufacturer NEC has stopped handset trading in the UK for at least 12 months. NEC told its operator partners last month that it would see out existing supply contracts, but that it would not supply new devices or sign new business until it had reviewed its position.
Around 20 redundancies are expected. NEC has said that it is pulling out because of high competition in Europe and the production costs of manufacturing phones in Japan. It will re-evaluate the European market and the needs of the network operators over the next year.
NEC only has supply contracts for GSM models in the UK now, despite being one of the first manufacturers to release 3G phones.