NEC, Casio, and Hitachi to Combine Powers for Mobile Handset Manufacturing

Pulkit Chandna

Japanese electronics manufacturers Casio, NEC and Hitachi have decided to merge their mobile phone divisions. The merged entity will be ready to lock horns with local and international competitors by April next year. Casio and Hitachi are already part of a joint venture they constituted in 2004. With NEC joining the existing joint venture, the resulting entity will, immediately after its birth, acquire the bragging rights that belong to the second-largest handset maker in Japan.

The latest entrant will be the largest stakeholder in the new business with a 66 percent stake, while Casio and Hitachi will hold 17.34 percent and 16.66 percent, respectively. The three are not only eyeing the jam-packed Japanese market, but also the global market. Japanese handset makers have not been able to have an impact on the world stage. Though they seem to posses the goods to shatter their global jinx to smithereens, the world has never really warmed up to the relatively more advanced Japanese cellphone technology.

The Japanese have pioneered many advancements in mobile technology, from e-mail to electronic payments. All said, their lack of success is not entirely incomprehensible. The fact is that Japanese handset makers have never tried to tailor their products to international tastes.

Image Credit: Geek

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