BEIJING—China’s Eastern Communications (Eastcom) announced it is halting its 123.08 million yuan (US$14.87 million) effort to develop its own proprietary mobile-phone technology to compete with foreign vendors.
The company mentioned its efforts were just not good enough.
Demand for Eastcom’s mobile handsets was weak last year, prompting the company to set aside a significant amount for inventory depreciation. Its net profit dropped 45 percent to 207.34 million yuan (US$25.05 million).
But Eastcom will still invest 120 million yuan (US$14.5 million) to upgrade production of its handsets.