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5 Reasons Renesas Ditched Modem Business

Bloated Workforce
6/28/2013 05:00 PM EDT
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eewiz
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CEO
Re: The Only Constant is Change
eewiz   6/30/2013 3:30:50 AM
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"Samsung will be fine for a while to come. Apple, however, won't be." 

 

Somehow, I feel it will be the otherway.. Apple is differentiated by its OS atleast. Samsung will feel the pressure of low cost highend Android smartphones.. coming from Google/Amazon/Chinese vendors and selling at 199-399

If you look at the notebook pc  market with Apple/others... thats what it tells atleast. 

patrick.mannion
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Re: The Only Constant is Change
patrick.mannion   6/29/2013 10:49:15 PM
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Samsung will be fine for a while to come. Apple, however, won't be.

JeffBier
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The Only Constant is Change
JeffBier   6/29/2013 10:26:00 PM
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Nice article, Junko.

The consolidation in the smartphone space over the past few years has been breathtaking.  It remains to be seen, though, how long Apple and Samsung can stay on top.

Tom Murphy
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Re: Is it the market or is it Renesas?
Tom Murphy   6/29/2013 5:20:44 PM
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Sure iPhone and Samsung providers are thriving. Tomorrow's market will be dominated by others, and those who provide for those are going to be tomorrow's winners. Renesas just couldn't wait for another brand to gain traction.

goafrit
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Re: Is it the market or is it Renesas?
goafrit   6/29/2013 7:57:45 AM
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>> It's impossible to maintain, without big design wins.

That is the main reason. The problem is not just the number of staff but the fact they have not had a great design win in the market. When that does not happen, market share stalls and revenue drops. That is the problem.

junko.yoshida
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Re: Is it the market or is it Renesas?
junko.yoshida   6/29/2013 6:56:24 AM
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True. But with their original strategy to bet big on the emerging demand for LTE modems, the mid to low-end smartphone market wasn't even in their sight.

eewiz
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CEO
Re: Is it the market or is it Renesas?
eewiz   6/29/2013 2:06:33 AM
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"Do you think it was Renesas' management that blew this whole thing, or it was inevitable because the global smartphone market so drastically shifted?"

 

Without a doubt, it was RMC management. The Apple/samsung duoploy in the smartphone market is blamed much. I mean, RMC couldnt find sockets in LG/HTC/Nokia/Motorola/huawei etc.... And even in the same market conditions, spreadtrum and mediatek thrived.

 

 

rick merritt
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The new business reality
rick merritt   6/28/2013 7:48:01 PM
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IMHO, today's markets move faster than good strategies.

 

Secondly, I see a trend where someone grabs a market with a fresh technology (Google with MapReduce; Apple with iPhone/iPad) and competitors quickly respond by open sourcing a competing technology (eg Hadoop is open source MapReduce and Android-based Galaxy devices are open sourced iPhone/iPads), so there isn't even time for a number three technology to emerge.

 

In networking, a handful of companies including Nicera (acquired by EMC) were trying to move fast with a version of software-defined networking. Competitors saw this and created Open DayLight, an open source version of the same functionalty.

 

The dog-eat-dog business climate has morphed into a cut-em-off-at-the-knees environment.

 

junko.yoshida
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Is it the market or is it Renesas?
junko.yoshida   6/28/2013 6:08:36 PM
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Call me a hopeless romantic. Three years ago, when I was sitting in the same room at Renesas HQ in Tokyo with Mr. Akao, the then president of Renesas, talking about Renesas' future,  I actually did believe that the Japanese company's acquisition of Nokia's modem business was a bold step, which might lead to something.

Do you think it was Renesas' management that blew this whole thing, or it was inevitable because the global smartphone market so drastically shifted?

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