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Lenovo in talks to take control of Fujitsu’s PC business

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Lenovo is said to be eyeing Fujitsu’s PC business which may further help them to focus more on IT and other business services.

New Delhi-Oct 8, 2016. Rednewswire/-

According to a report by the business daily Nikkei, Lenovo and Fujitsu may agree to this deal this month and some 2000 about employees are likely to be shifted to Lenovo. Fujitsu is the second largest Japanese PC assembler after NEC Corp. The deal will help the company seek help of the world’d largest PC maker. In 2011, Lenovo and NEC had set up a joint venture.

Fujitsu may probably transfer its development, design and manufacturing operations to Lenovo or Lenovo may buy a majority stake of Fujitsu’s PC business, according to Nikkei. However, the financial terms were not mentioned.

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Initially, Fujitsu had also also collaborated with Toshiba Corp and VAIO Corp, after which the latter was spun off from Sony to pave way for a three way merger of PC businesses. However, the decision fell through in the beginning of this year because the companies were not able to agree upon the specifications.

The coming up of latest technology equipped smartphones and tablets has taken a toll over the global demand for PCs. Small manufacturers or businesses are not able to compete with large scale production.In the second quarter of 2016, worldwide shipment of PCs rose strongly but however shrank by 4.5 percent as compared to last year’s record of 62.4 million units according to IDC, a tech research company.

Of the 62.4 million units shipped, Lenovo accounted for 21.2 percent followed by HP and Dell with 20.8 percent and 16 percent respectively. Apple computer had a 7.1 percent share while Asustek Computers Inc held a 7.2 percent share.

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By the end of the financial year in March, Fujitsu had shipped nearly 4 million units mostly in Japan according to the company. The company was unable to make it to IDC’s top 5 rankings.

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