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joeorc said:

They are just going to go more premium models, and cut on more mid tier smartphones, now they will not sell as many, but on the same token any that they will sell will be in profit. Even if its only 10 million a year it will still generate profit! But the Camera Cmos investment will be increased with the cuts in mid tier production, and switched to larger CMOS R&D. 


That... could end up as being an even bigger disaster. Phone markets are hyper saturated and the thing would have to compete against the top-end Lumia, Samsung, and Apple brands. They'd sell so little that the brand would and could well stangnate into irrelevance if they even manage to somehow make them sell at a profit while also offering price-point competition with competitors.