Fujitsu is spinning off its computer and mobile businesses

Japanese companies used to be the kings of consumer electronics, but the the rise of the mobile market and increased competition from foreign companies has caused many of them to struggle. Fujitsu is one such company, and in an effort to improve the efficiency of its businesses, it’s decided to spin off its computer business and its mobile business into two separate companies, called Fujitsu Client Computing Limited and Fujitsu Connected Technologies, respectively. Despite this, the company claims that it’s still open to the idea of merging its computer business with Toshiba and Vaio’s.

Fujitsu is spinning off its PC and mobile divisions in an attempt to create more efficient businesses that can better compete in their increasingly competitive markets. The spinoffs, announced today, will create two new companies: the first, Fujitsu Client Computing Limited, will contain its laptop and desktop divisions; the second, Fujitsu Connected Technologies, will contain its mobile phone division. The split is expected to be complete on February 1st. Fujitsu will continue to own both companies, at least for the time being. “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,” Fujitsu writes, explaining the spinoffs. That difficulty has put all of the major Japanese PC makers in a tough spot. Recent reports have suggested that Fujitsu, Toshiba, and Vaio, which was previously part of Sony, could all merge their PC businesses to form one more formidable and efficient competitor. At the time of the last report, Fujitsu said it was still considering its options. Spinning out its PC unit into a new company may be its decision — or it could be a first step toward making it available for a merger.