Fujitsu has agreed to merge its mobile phone operations with Toshiba's mobile handset business, which isn't doing so well for itself, in an effort to bolster its stock and take on outsider big boys such as Apple and Android, reports the Wall Street Journal.
The official word from Fujitsu is that its handset business is currently in a strong position and turning over tidy profits, but it doesn't want to rest on its laurels. The iPhone's doing well in Japan and this has Fujitsu worried.
The Japanese MM Research Institute reckons that the Japanese market growth for smartphones is going to be huge, expanding from 2.34 million units last fiscal year up 41 percent to 3.3 million units for this fiscal year.
Toshiba's had a tough time with its handsets and doesn't mind offloading the responsibility onto Fujitsu.
The company has been making losses and in the last fiscal year, ending March, its revenue dropped 44 percent. It's thought by MM Research that the new merger could pull Fujitsu up to second place in the domestic share, combined at 18.7 percent. Sharp is still top dog - it had a 26.2 percent share of the market in the fiscal year ending March.