Toshiba and Fujitsu have announced a deal which will see the elements of their enterprises which deal with the mobile phone market become one homogeneous entity.
When the merger is completed in October of 2010 it will result in a firm that is the second largest mobile manufacturer in the relatively closed market of Japan.
The creation of smartphone technology is said to be the aim of the newly formed company and it has made no pretence about its aims; to become Japan's largest mobile manufacturer.
"By combining their mobile phone development know-how and technological strengths, Fujitsu and Toshiba intend on enhancing their handset development capabilities and at the same time improving business efficiency," a press release stated.
Toshiba has a number of mobiles on the market through various network providers in Japan, but Fujitsu offers its handsets via a single partner.
Industry expert Yichi Ishida said: "Fujitsu is lacking smartphones and the industry needs consolidation."
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