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Panasonic have announced that they will no longer be doing standard GSM or 2G phones and will instead concentrate on new 3G capable mobiles

Due to increasing competition and a history of handsets which haven't captured the public's hearts, Panasonic have decided to stop producing 2G GSM phones in favour of concentrating on newer 3G handset development. It's a shame as it seemed that Panasonic were really starting to get a handle on what the public wanted with their 2G handsets with the release of the Panasonic VS6, a 2 megapixel cameraphone which came pre-installed with a full version of the popular Sonic the Hedgehog video game. The news has made the price of this handset plummet making it the cheapest 2 megapixel camera phone on the market. Click here to see the cheapest prices for the Panasonic VS6.

By concentrating on 3G development instead of 2G, Matsushita, who make the Panasonic brand will have to axe over a thousand jobs in it's Philippines and Czech Republic factories. Also by focusing on using established operating system Linux rather than developing it's own will cause jobs to be lost in it's research and development centres in the USA and UK taking the expected number of redundancies up to around 1,400.