Fujitsu and Toshiba today announced the completion of the deal for the merger of their mobile phone areas. The companies therefore conclude the process announced on 17 June, with the disclosure of the signing of a memorandum of understanding.
The agreement between the two companies provides for Toshiba to transfer its mobile phone unit, with its respective team of around 400 employees, to a joint venture controlled by Fujitsu.
It is also stipulated that the new company should start operations from next October, and is expected to become profitable at the end of the first year of activity. THE joint venture, is expected to market a total of 7.5 million mobile phones by March 2012, 14 percent more than currently recorded by joint sales.
With the creation of the new company, we are facing the emergence of the second largest mobile phone manufacturer in Japan, which will allow Fujitsu and Toshiba to strengthen their market position and share the costs associated with the development of innovation in this area.
«The partnership in the area of mobile telephony will enable Fujitsu and Toshiba to strengthen their terminal development platforms for the Japanese market, allowing them to create more competitive products», said the companies in a joint statement, when it announced the signature of the principles of understanding.
The merger is yet another attempt by the competition to challenge the dominance of Nokia and Samsung, with recently also NEC, Hitachi and Casio announcing the meeting of their mobile phone business areas.