Toshiba Hangs Up

By Greg Scoblete On Dec 17 2001 - 8:00am

Toshiba will follow Sony and Casio in hanging up on the home phone market.

The company cited steep price erosion and a diminishing market share for shutting down its telecommunications division and planning to phase out its home phone product lines in the first quarter of 2002, when it expects to be out of inventory.

Toshiba's distribution channels have been informed of the decision, the company said.

Toshiba follows Sony and Casio Phone Mate as another marquee brand to leave the industry in the latter half of 2001. Sony and Casio also cited massive price erosion and diminishing returns for their decision.

Marketers said companies such as Toshiba and Sony were particularly vulnerable to profit erosion because they sourced from other manufacturers. Uniden made Toshiba's phones.