Fujitsu Splits PC and Smartphone Division Into Two Businesses; This To Happen Officially Next Year
Mary Cris BalancioThe smartphone industry has been growing for some time now. And it seems that its allure and reputation have been too strong to resist that we have seen startups and veteran companies even venturing on that side of the tech industry. So it comes as less of a surprise to know that another computer company is enticed by the promise of the smartphone land and a bit disgruntled by the PC industry.
In the past, the public has witnessed how Hewlett Packard and IBM distanced themselves from the seemingly cruel and dwindling industry of personal computers and had split their companies. It could be recalled that, recently, Hewlett Packard Enterprise and HP Inc. officially split on Nov. 1. Actually, IBM has been the first to do the splitting trend when they sold their PC division Lenovo back in 2005. And this time, another company has joined the bandwagon.
And that company is Japan's Fujitsu Ltd., which has plans to make two separate companies for their personal computer business and their new smartphone venture. These plans are reportedly commencing by Feb. 1, 2016.
The move, which was approved during the board meeting on Dec. 24, is an attempt by the tech company to create more efficient businesses that can compete better with the current competitive markets.
The company has announced that the two new companies will be Fujitsu Client Computing Limited, which will be dealing with the company's laptop and desktop divisions, and the second company will be named Fujitsu Connected Technologies and will take care of the company's mobile division. Both companies are still owned by Fujitsu for now.
Fujitsu said in an official statement that it has become increasingly difficult to achieve a way to differentiate itself with the existing trend of commoditizing products like smartphones and PCs, plus the intensification of competition with other global vendors. This has made it difficult for the company and has brought them in a tight spot where a swift solution is needed, thus the splitting of divisions.
There were speculations before that Fujitsu, Toshiba and Vaio may be merging their PC businesses to form one strong and efficient competitor. At that time, Fujitsu made a statement and said it was considering its options, which may be to spin out its own PC business into a new company or move towards the possibility of a merger. Well, apparently, Fujitsu opted for the former.
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