Panasonic has announced that it plans to move out of Japanese smartphone market and will no longer make consumer smartphones, reports Reuters. The company will however continue to sell rebranded smartphones in the emerging markets like India, Panasonic President Kazuhiro Tsuga said on Wednesday.

Given the mounting losses by the smartphone division of the company, the decision does not seem all that surprising.  According to Tsunga, the smartphone division was expected to lose more than 1.1 billion yen ($11.02 million) in the current financial year and they can’t have a division, which continues to post losses.

“It’s not acceptable for the company to be bleeding red ink like this, so we have to think about ways to develop assets that we do have in a more effective direction,” Tsuga said.

Panasonic has also stated that it will develop smartphones for business consumers like the Toughbook tablet, which is also targeted to the enterprise users.

The mobile market across the globe is seeing a lot of movement and the companies like Panasonic have been caught out by the meteoric rise of Apple and Samsung. Microsoft’s acquisition of Nokia’s devices division and degrading performance of HTC and BlackBerry every quarter are just some of the examples. We are expecting to see a whole lot of changes in the coming two-three years and only after that a clear new order of smartphone manufacturers will emerge.