NEC, Casio and Hitachi in joint mobile phone development

Consolidation of Japan's mobile phone sector continues as three domestic handset manufacturers NEC, Casio and Hitachi have decided to jointly produce mobile phones. According to Nikkei, the newly created venture will start its operations from the beginning of next financial year in April 2010. NEC would take over the leadership with the 70.4% stake in the venture, which will be named NEC Casio Mobile Communications. In 2004 Casio and Hitachi have already merged their production units together to sustain in a highly competitive market. Other examples of market consolidation include the Kyocera and Sanyo marriage and exit of Mitsubishi in prior years. I expect the squeeze to continue and more consolidation to happen in the coming years.

Stakeholders of new venture
NEC	70.4%
Casio	20%
Hitachi	9.6%

Source: Nikkei