Fujitsu and Toshiba Sign MOU to Merge Mobile Phone Businesses
Tokyo, June 17, 2010 – Fujitsu Limited and Toshiba Corporation announced that today they have signed a memorandum of understanding (MOU) to merge their mobile phone businesses. According to the MOU, Toshiba will transfer its mobile phone business to a new company to be established October 1, 2010, and Fujitsu will acquire a majority of the shares in the company.
By merging their mobile phones businesses, Fujitsu and Toshiba are aiming to become the No. 1 provider of mobile phones in Japan. Collaboration in the mobile phone business will allow Fujitsu and Toshiba to strengthen their handset development platforms for the Japanese market and enable the companies to continue to create highly competitive products for their customers. Both Fujitsu and Toshiba are market leaders in designing compact, highly functional handsets. This competitive advantage will be leveraged to develop highly competitive next-generation handsets for the expanding smartphone market.
Fujitsu manufactures some of Japan's most advanced mobile phones for sale through partner NTT DOCOMO, INC. Fujitsu's proprietary technologies include mobile phone software platforms, water- and dust-resistant design, fingerprint security and sensor technologies. Fujitsu mobile phones have become the handset of choice for many generations of users in Japan.
Toshiba manufactures a range of mobile phone handsets that include a wealth of world-class technologies, including smartphone-related technologies and imaging technologies developed in its LCD television business. In Japan, Toshiba provides its handsets through sales partners KDDI CORPORATION, NTT DOCOMO, INC., and SOFTBANK MOBILE Corp. Last year, Toshiba shifted domestic handset production overseas in order to raise global cost competitiveness.
Business Development Plans
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. On the basis of these strengths, the companies will manufacture handsets which are responsive to the needs of customers and competitive in the dynamic mobile phone market. Through continuous innovation, Fujitsu and Toshiba will collaborate to develop new handsets for markets in and outside Japan which support rich and rewarding lifestyles.
Fujitsu and Toshiba plan to sign a final contract at the end of July 2010.
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Fujitsu is a leading provider of ICT-based business solutions for the global marketplace. With approximately 170,000 employees supporting customers in 70 countries, Fujitsu combines a worldwide corps of systems and services experts with highly reliable computing and communications products and advanced microelectronics to deliver added value to customers. Headquartered in Tokyo, Fujitsu Limited (TSE:6702) reported consolidated revenues of 4.6 trillion yen (US$50 billion) for the fiscal year ended March 31, 2010. For more information, please see: www.fujitsu.com.
Toshiba is a world leader and innovator in pioneering high technology, a diversified manufacturer and marketer of advanced electronic and electrical products spanning information & communications systems; digital consumer products; electronic devices and components; power systems, including nuclear energy; industrial and social infrastructure systems; and home appliances.
Toshiba was founded in 1875, and today operates a global network of more than 740 companies, with 204,000 employees worldwide and annual sales surpassing 6.3 trillion yen (US$68 billion). Visit Toshiba's web site at www.toshiba.co.jp/index.htm.