Saturday, 16 April 2016

Toshiba, Vaio and Fujitsu said to be considering laptop and PC merger

Toshiba, Vaio and Fujitsu
Japanese giants considering combining their laptop and PC businesses, according to a media report

It’s been reported that Toshiba, Fujitsu and Vaio are considering a merger of their laptop PC businesses. According to a report in The Nikkei financial newspaper, the three companies have begun specific discussions on the merger later, with the aim of launching the company on 1 April, when the next Japanese financial year begins.

Vaio was spun off from Sony in mid-2014 and will likely be the surviving entity, with Toshiba and Fujitsu merging their laptop businesses into the unit. Ownership will be roughly equal, says The Nikkei.

roughly equal, says The Nikkei. It wasn’t possible to immediately contact the three companies for comment. As we report opposite, global demand for PCs is decreasing. In the third quarter of 2015, shipments dropped to 71 million units, according to IDC. Laptops made up the majority of these sales at 42 million units, but they were also down on the previous year. “We’re entering a phase in the PC industry where we are expecting some consolidation to happen,” says Linn Huang, an analyst at IDC.

He explains that price competition is hurting PC makers, while the prevalence of smartphones and tablet PCs in homes is reducing the need to continually refresh machines as they get older.

The market is led by Lenovo, Dell, HP and Apple, all of which do well in enterprise laptop sales. Other brands are more focused on the consumer market, which is experiencing softer demand than the enterprise sector, Huang adds. Weakness in the domestic Japanese market is also hitting the three companies in question, he says.

NEC, which was a market leader in the Japanese laptop market, merged its portable PC business with Lenovo in 2011.

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