NEC, Casio, Hitachi to merge handset businesses

Sep 14, 2009

(AP) -- Japanese electronics makers NEC Corp., Casio Computer Co. and Hitachi said Monday they will combine their mobile phone handset-manufacturing operations by April next year in a bid to boost their competitiveness at home and abroad.

The three companies are relatively small players in the domestic market for handsets, which is saturated and dominated by Japanese manufacturers, although imports like the have scored some success in recent years.

Under the move, NEC will join Casio and Hitachi's mobile joint venture set up in 2004.

The new business, capitalized initially at 1 billion yen ($11 million) will be 66 percent owned by NEC, 17.34 percent by Casio and 16.66 by Hitachi. By June 2010, that will be raised to 5 billion yen ($55 million), with NEC owning a 70.74 percent stake, Casio 20 percent and Hitachi 9.26 percent.

The three companies will share their technology and resources to lower development costs and boost their competitiveness and brands, they said.

Japanese makers have largely failed in selling handsets overseas, partly because the technology in Japan is different from U.S. and European systems. Mobile phones here also tend to be loaded with quirky features that aren't likely to be popular abroad.

NEC makes cell phones for Japanese mobile carriers Inc. and Softbank Mobile Corp., while and Casio make for KDDI Corp. and Softbank.

©2009 The Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.

Explore further: Amazon ups Ohio jobs to 1,000, begins collecting sales taxes (Update)

Related Stories

Sharp in Japan mobile's top spot

Apr 25, 2006

Japanese electronics manufacturer Sharp has overtaken some of its largest domestic rivals in the industry to become the biggest mobile-phone maker in terms of shipments within Japan for the first time in the latest fiscal ...

DoCoMo invests $45.5M in US mobile video firm

Jul 06, 2009

(AP) -- NTT DoCoMo, Japan's largest mobile phone operator, said Monday it spent $45.5 million to take a 35 percent share in a U.S. company that makes multimedia technology for its mobile phones.

Japanese firms in talks on microchip merger

Apr 16, 2009

Renesas Technology Corp. and NEC Electronics Corp. are in merger talks to create Japan's top chipmaker as they seek to survive the global recession, reports said Thursday.

Recommended for you

The top 10 highest-paid female CEOs

May 29, 2015

Female CEOs are outpacing their male colleagues in pay, although they remain vastly outnumbered in the top echelons of American companies.

User comments : 0

Please sign in to add a comment. Registration is free, and takes less than a minute. Read more

Click here to reset your password.
Sign in to get notified via email when new comments are made.