Gentlemen, we are now in a state of necessity, and necessity knows no law - Reich Chancellor Bethmann-Hollweg
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Fujitsu and Toshiba merge mobile businesses
JAPAN'S SECOND BIGGEST mobile phone maker will have been created by October with the merger of Fujitsu's and Toshiba's handset businesses.
Under the deal the two electronics makers will share R&D in a bid to take on global leaders such as Nokia and Samsung.
Word on the street is that there had to be some more industry consolidation in Japan, where too many mobile makers are fighting over a much smaller market.
After the planned merger, there will be six groups making mobile phones in Japan. There used to be ten.
Fujitsu manufactures handsets for Japan's biggest mobile phone operator NTT DoCoMo while Toshiba mainly supplies cell phones to KDDI, Japan's number two telecoms firm.
It's looking more like a Fujitsu takeover as it will be the majority share owner of the merged business and 400 Toshiba staff will be transferred to Fujitsu. Fujitsu does not think that the deal will have much impact on the company's bottom line and could even add revenue in the short term.
Toshiba on the other hand does quite well out of the deal with smaller staff numbers and 30 per cent of the number two Japanese telco. If the business makes losses then it will be Fujitsu that takes most of the costs. µ
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The Japanese versions are already better than the rest of the world for atleast for few years. But they never export them outside Japan.
All they need to do to get on the top is to release those Japanese exclusive phone outside Japan.