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Fujitsu spins its PC and smartphone businesses

Fujitsu has decided to spin off its PC and smartphone businesses and create two new companies for each business. The two companies will be subsidiaries, fully owned by Fujitsu.

The new PC business is called Fujitsu Client Computing Limited, and the phone business will be known as Fujitsu Connected Technologies Limited.

Why do this? The company explained in a press release issued a few days ago:

“With the ongoing commoditization of ubiquitous products, mainly of PCs and smart phones, it has become increasingly difficult to achieve differentiation, and competition with emerging global vendors has intensified.”

In other words, the way the company is currently structured, it can’t compete with the likes of Xiaomi or Huawei, churning out solid devices at very affordable prices.

“The Company has resolved to implement Each Company Split in order to clarify management accountability, to enable swift management decisions, and to pursue comprehensive efficiency by creating independent companies for the PC business and the mobile phones business, respectively, and to establish an integrated system covering all aspects of research, development, design, manufacturing, sales, planning, and after-sales services.”

By becoming independent companies, the two will have more freedom and more possibilities to create better products and position themselves better on the market.

The company has also said the price of the split is negligible. “The impact of the splits on the Company's consolidated financial results is insignificant,” it said.

Both companies should become active on February 1 2016.