Toshiba, Vaio, Fujitsu said to be considering laptop PC merger

The new company could launch in April 2016

Toshiba, Fujitsu and Vaio are considering a merger of their laptop PC businesses, according to a Japanese media report.

The three companies will begin specific discussions on the merger later this month with the aim of launching the company on April 1, when the new Japanese financial year begins, according to a report in Friday's Nikkei financial newspaper.

Vaio was spun off from Sony in mid-2014 and will likely be the surviving entity, with Toshiba and Fujitsu merging their laptop businesses into the unit. Ownership will be roughly equal, The Nikkei said.

It wasn't possible to immediately contact the three companies for comment.

Global demand for PCs is decreasing. In the third quarter, shipments dropped 11 percent year over year to 71 million units, according to IDC. Laptop computers made up the majority of those shipments at 42 million units, but they were also down on the previous year.

“I think it’s one way to survive for those companies,” said Mikako Kitagawa, an analyst with Gartner Group. She said with their smaller laptop market shares, a merger might make sense. The three also have a complementary global footprint.

Fujitsu has a good share in the European market because it used to work with Germany’s Siemens and Toshiba is stronger in North America, she said.

"We’re entering a phase in the PC industry where we are expecting some consolidation to happen," said Linn Huang, an analyst with IDC in California.

He said price competition is hurting PC makers and the prevalence of smartphones and tablet PCs in homes is reducing the need to continually refresh machines as they get older.

The market is led by Lenovo, Dell, HP and Apple, all of which do well in enterprise laptop sales. Other brands are more focused on the consumer market, which is experiencing softer demand than the enterprise sector, Huang said. Weakness in the domestic Japan market is also hitting the three companies in question, he said.

NEC, which was a market leader in the Japanese laptop market, merged its portable PC business with Lenovo in 2011.

Join the newsletter!

Or
Error: Please check your email address.
Rocket to Success - Your 10 Tips for Smarter ERP System Selection
Keep up with the latest tech news, reviews and previews by subscribing to the Good Gear Guide newsletter.

Martyn Williams

IDG News Service
Show Comments

Essentials

Mobile

Sansai 6-Outlet Power Board + 4-Port USB Charging Station

Learn more >

Exec

Budget

Back To Business Guide

Click for more ›

Brand Post

Most Popular Reviews

Latest Articles

Resources

PCW Evaluation Team

Andrew Teoh

Brother MFC-L9570CDW Multifunction Printer

Touch screen visibility and operation was great and easy to navigate. Each menu and sub-menu was in an understandable order and category

Louise Coady

Brother MFC-L9570CDW Multifunction Printer

The printer was convenient, produced clear and vibrant images and was very easy to use

Edwina Hargreaves

WD My Cloud Home

I would recommend this device for families and small businesses who want one safe place to store all their important digital content and a way to easily share it with friends, family, business partners, or customers.

Walid Mikhael

Brother QL-820NWB Professional Label Printer

It’s easy to set up, it’s compact and quiet when printing and to top if off, the print quality is excellent. This is hands down the best printer I’ve used for printing labels.

Ben Ramsden

Sharp PN-40TC1 Huddle Board

Brainstorming, innovation, problem solving, and negotiation have all become much more productive and valuable if people can easily collaborate in real time with minimal friction.

Sarah Ieroianni

Brother QL-820NWB Professional Label Printer

The print quality also does not disappoint, it’s clear, bold, doesn’t smudge and the text is perfectly sized.

Featured Content

Product Launch Showcase

Latest Jobs

Don’t have an account? Sign up here

Don't have an account? Sign up now

Forgot password?