Thalwill, Switzerland-based u-blox said this week that it will phase out its cellular business to focus on its location division. The company said the focus on its location business will help it expand opportunities in GNSS, short-range IoT connectivity, autonomous vehicles, industrial and tracking markets.
The company hinted that there may be layoffs in its 200-employee cellular IoT business. While the division made about $30 million in the first half of 2024, it also had nearly $17 million in losses during the same time.
As a strategic and operational focus, the company said it will concentrate on its money-making Wi-Fi and Bluetooth modules. “This strategic shift will enable us to unlock even greater potential within the positioning technology market and accelerate the development of cutting-edge solutions for our customers,” said Stephan Zizala, u-blox CEO, in a statement. “Our efforts to find a viable path forward for the Cellular business did not pan out, including exploring a potential sale, leading us to the decision to phase out this business. We will do our utmost to support our employees, customers and partners impacted by this decision.”
According to published reports, financial analysts said that competition from Chinese vendors, low margins for IoT hardware, a failed launch of a cellular chipset and other factors contributed to the decision to close the division, rather than try to sell it.
In other company news, u-blox said it has settled a year-long dispute with Techtotop. The issue surrounds disputes over patents, copyright and other matters in China, the company said.
