Japanese electronics company Fujitsu has sold a majority stake in its mobile device business to Polaris Capital Group. Personally I was only vaguely aware Fujitsu even made phones but then I don’t live in Japan.
The deal means Polaris will start a new company that will take over Fujitsu’s phone business, while Fujitsu continues to hold a minority stake in that new company.
Fujitsu says under the new structure, Fujitsu will continue to produce telecommunications products under its Arrows, Raku Raku, and in-house brands.
The transfer to Polaris is expected to be complete by March.
As noted by Reuters, other Japanese electronics companies including Sony, Sharp, and Kyocera continue to offer smartphones in Japan and around the world, but the global smartphone market is currently dominated by Apple and Samsung and there’s not a lot of room for other companies to rake in profits.
Part of the justification for Fujitsu’s sale of its phone business is that “as the mobile device business has become increasingly commoditized, competition among global vendors has intensified.”