South Korea’s No. 3 smartphone maker Pantech Co. said Monday it will seek new sources of revenue from the machine-to-machine (M2M) sector to make up for its slowing handset business.
The company said :
“Pantech, which has been leading the global handset industry for the past 23 years, will now build a new growth engine by focusing on the M2M business.”
The firm, currently under court receivership, is due to be put on sale soon.
Pantech Co.’s real-time operation system device is installed in a Gyeonggi Province bus. The company said on Sept. 29, 2014 it will tap deeper into the machine-to-machine (M2M) sector and find new sources of income to overcome its slowing handset business. (Photo courtesy of Pantech.) Pantech Co.’s real-time operation system device is installed in a Gyeonggi Province bus. The company said on Sept. 29, 2014 it will tap deeper into the machine-to-machine (M2M) sector and find new sources of income to overcome its slowing handset business.
Pantech first entered the M2M industry in late 2012 by providing a communications module to S-1 Corp., a security arm of Samsung Group. Since then, it has expanded the business to cover other areas, including the real-time bus operation system in Gyeonggi Province.
“The company will also make efforts to utilize the Internet of Things by providing never-before-seen solutions to various segments of our daily lives,” Pantech added. “Currently, we are establishing business partnerships in finance, food, and healthcare firms.”
The IoT refers to a computing concept in which all physical objects are connected to the Internet and become able to identify themselves to other devices and exchange related data for improved efficiency and convenience.
Pantech is also in talks with some 10 Japanese firms to supply its products. Japan’s M2M market is six times larger than that of South Korea, the company said, adding it will also make efforts to tap the North American and European markets as well in the near future.
Last week, the Seoul Central District Court approved a plan by Pantech creditors, led by the Korea Development Bank, to sell the company, a month after it commenced the court receivership program for the troubled firm.
Although Pantech graduated from a five-year debt rescheduling program in December 2011, its financial footing weakened again as it struggled with falling sales from increased competition in the local smartphone market dominated by Samsung Electronics Co. and LG Electronics Inc.
