Japanese electronics groups Hitachi, Casio and NEC are to merge their mobile phone operations in an attempt to win back global market share. The new company will be called NEC Casio Mobile Communications, with NEC owning 71% of the business, Casio 20% and Hitachi a 9% stake. Hitachi will also continue to sell handsets under its own brand.
The three companies are currently small players in the mobile phone market. As part of the deal they will share technology and resources to create Japan's third-largest phone maker, behind Sharp and Panasonic. Casio and Hitachi first created a joint mobile venture in 2004, but they recorded a net loss of JPY12.5bn (USD138m) on sales last year.
The merger will bring together NEC’s strong relationship with Japan’s largest mobile network, NTT DoCoMo, and Casio Hitachi's position with second-ranked KDDI. NEC will also benefit from Casio Hitachi's international links, in particular with Verizon in the US and LG Telecom in South Korea.
StrategyEye's related categories: Mobile Operators - General, Mobile Phone Devices
StrategyEye's related companies: Verizon, Casio, NEC, Panasonic Corp, NTT DoCoMo, Sharp Electronics, Hitachi, LG Telecom, KDDI Corporation
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