Eyeing the handsome profits made in the Indian mobile market, Indian IT services firm MindTree Ltd last year announced its plans to foray into the smartphone business. And, the company was infact planning to launch a 3G smartphone based on Google’s Android operating system in the United States in the second half of the current financial year. But now, the company has said it is wrapping up its mobile business and will focus on the services.
MindTree now intends to convert MindTree Wireless into a services company, said the company. It acquired Kyocera's India R&D centre in October 2009. This unit, now called MindTree Wireless Private Ltd, was working on creating IP in the 4G LTE wireless infrastructure area as well as a 3G enabled smartphone. The company had made an investment of $4.5 million into this business over the first two quarters of the fiscal.
“MindTree believes this approach will be in the best interests of MindTree's stakeholders,” said MindTree chief executive officer and managing director, Krishnakumar Natarajan. The transition is expected to be completed by the end of the third quarter.
"We are also confident that the revised focus of MindTree Wireless as a services business will help reduce risks and improve the overall profitability of MindTree," added Natarajan.