Fujitsu, Toshiba to merge mobile phone units

Bolaji Ojo
EE Times
(06/17/2010 7:46 EDT)

Fujitsu Ltd. and Toshiba Corp. said they have reached an agreement to merge their respective mobile handset businesses in a move they expect will further strengthen their positions in the Japanese market.

The companies said in a statement they signed a memorandum of understanding to combine the two businesses adding the agreement would strengthen both the marketing and product design operations.

"By combining their mobile phone development know-how and technological strengths, Fujitsu and Toshiba intend on enhancing their handset development capabilities and at the same time improving business efficiency," the companies said.

As part of the agreement, the joint venture partners said Toshiba will transfer its mobile phone operations to a new company to be created in October while Fujitsu will acquire a majority share in the new business.

Fujitsu is one of Japan's largest mobile phone vendors and sells its products, especially the high-end smartphones to NTT Docomo Inc., a major telecommunication service provider. Toshiba also sells wireless handset products to NTT Docomo and other service providers, including KDDI Corp. and Softbank Mobile Corp.