Several major Japanese electronics manufacturers announced they'll merge their mobile phone business units so they are able to reduce costs and better compete in Europe and North America.
The three companies, NEC, Hitachi and Casio, will finalize the integration deal in April 2010, with a new company, called NEC Casio Mobile Communications, ready to become Japan's No. 2 mobile phone manufacturer. Sharp remains the No. 1 phone company in Japan, but this new trio may be able to add even more pressure against Sharp.
"We should take a chance to expand our business overseas," said Akihito Otake, NEC VP who spoke with the Wall Street Journal. The company will focus mainly on the United States first, working on higher-end devices, as the company won't be able to compete with Samsung and Nokia, according to Otake.
Furthermore, the European market may also be difficult to crack, as there are a number of lower-cost options available to consumers, which means the new Japanese powerhouse may only focus on higher-end phones across the board. It's likely cheaper handsets will be released in Japan, with NTT DoCoMo expected to be the most widely used mobile service.
It's a very interesting move, and I'm curious to see what their results will be in a year or two. NEC Casio Mobile will likely be able to make a strong dent in the Japanese market, but it’s unknown how it’ll do in the extremely competitive global smartphone market.
What do you think NEC Casio Mobile has to do to become relevant in the United States and Europe?
