Bronze MemberUsername: Pcbpartner
Post Number: 25
According to the agreement, Toshiba will transfer its mobile-phone business to a new company to be established October 1. Fujitsu will then acquire a majority of the shares in the company. Further details of the planned merger were not released.
The move comes as competition in the mobile-phone market, particularly in smart phones, is intensifying. On Wednesday, top handset maker Nokia warned that it could miss its Q2 handset division sales target on lower than expected ASPs (average selling prices) and mobile-device volumes. Nokia also said it expects its mobile-device value market share to be slightly lower in 2010, compared to 2009.
Nokia, which had about 35% of the worldwide handset market in Q1, has faced increased competition in smart phones as Apple's iPhone continues to fly off shelves, RIM's Blackberry remains a popular business-side choice, and devices based on open-source Android platform gain momentum.
Fujitsu and Toshiba made note of smart phones in their announcement and said they plan to develop new handsets for markets in and outside Japan.
Fujitsu manufactures mobile phones for sale through its partner NTT Docomo Inc. Meanwhile, Toshiba in Japan provides its handsets through sales partners KDDI Corp, NTT Docomo, and Softbank Mobile Corp.
The two companies plan to sign a final contract at the end of July.