Fujitsu to spin off PC, phone businesses into separate companies

Japanese electronics company Fujitsu has announced that it will be splitting its PC and mobile business into two separate entities. The new PC business will be known as Fujitsu Client Computing Limitied and the phone business as Fujitsu Connected Technologies limited.

The split is expected to be completed on February 1 and Fujitsu will continue to own both companies."With the ongoing commoditization of ubiquitous products, mainly of PCs and smartphones, it has become increasingly difficult to achieve differentiation, and competition with emerging global vendors has intensified,", stated Fujitsu in a press release.  

In other words Fujitsu is finding it hard to make profit in the phone business when other smartphone manufacturers especially the Chinese brands are coming up with cheap smartphones with decent specs, and competing with them is becoming increasingly difficult. As for the PC division, it is not doing well, because the PC market has been stagnant in recent years. The splitting would also make it easier to get rid off in future, in case one of the division is not performing well. 

Fujitsu also stated that it decided to split the business to “clarify management accountability, to enable swift management decisions, and to pursue comprehensive efficiency by creating independent companies for the PC business and the mobile phones business, respectively”. The company wants to establish an integrated system covering all aspects of research development, design, manufacturing, sales, planning and after-sales services, it added.

Earlier this month, a report suggested that Fujitsu, Toshiba and VAIO would join forces and combine their PC division to create a new company. It is not clear if Fujitsu's announcement is the first step towards the creation of the new combined company.

Via