mobileu.co.uk

Japanese companies join forces in mobile phone battle

Two Japanese electronic companies will join forces later this year to contend with stiff competition in the mobile phone industry.

Toshiba and Fujitsu have just announced that they will merge their mobile phone businesses in October this year. The decision to join together is the result of the ever-increasing competition in the industry from US giants Apple, among others.

By combining their mobile phone businesses, they are set to become the second-biggest phone maker in the Japanese market, behind Sharp. The proposed merger is expected to be signed into by the end of July.

In a joint statement, Toshiba and Fujitsu said the move would strengthen their brand development and future market share.

“The companies will manufacture handsets which are responsive to the needs of customers. Fujitsu and Toshiba will collaborate to develop new handsets for markets in and outside Japan," they said.

The two firms aim to focus particularly on the smartphone segment. A growing and increasingly competitive, but lucrative market.

“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 statement continued.

Combined, the two mobile phone brands have a market share of roughly 19 per cent. This is second only to Sharp’s 26 per cent.