Windows Phone Thoughts: O2 Asia Pacific Reportedly Reducing Size or Contemplating Market Withdrawal

"O2 Asia Pacific reportedly is planning to reduce its size or eventually withdraw from the Asia-Pacific market due to lower-than-expected sales, and the move could result in significant losses for Taiwan-based handset makers, according to a Chinese-language Commercial Times report. The company has stopped taking delivery of handsets as well as suspend orders for new models, with ODM handset maker Quanta Computer likely to suffer a loss of NT$400-500 million (US$12.2-15.2 million), and Gigabyte Communications and Arima Communications to incur minor losses, from canceled orders, the paper indicated."

An interesting report has come out of Commercial Times, although O2 Asia Pacific was quick to respond by stating that it has no plans to reduce its size or withdraw from the market and that it is merely adjusting its product strategy for the second half of the year. Plausible explanation, although as someone living in the region, I must admit that even after the company's recent release of powerful and compact devices, I'm seeing less of them in the hands of consumers due to heavy competition with other manufacturers. I don't believe some sort of company restructure to counter any recent losses has been completely ruled out.