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Toshiba and Fujitsu to battle Lenovo with PC merger

By combining their PC businesses, the domestic manufacturers are aiming to beat the NEC Renovo group, which now has the top market share in Japan, at 26.3 percent.

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According to people familiar with the talks, Vaio would be the only remaining company if the deal takes place, with Toshiba and Fujitsu transferring staff, investments, and operations under the Vaio name. Sony is considering selling off its ailing smartphone business, having sold off Vaio in 2014. Reaching a conclusion over the integration will likely be carried over to next year, the observers said. Still that doesn’t stop it happening now and again and the new rumor is that Toshiba, Fujitsu and Vaio may be set to team up to become one monstrous PC manufacturer.

Japanese tech vendors Toshiba and Fujitsu reportedly are considering merging their struggling PC units in an attempt to create a stronger company in a shrinking market and to save costs by ridding themselves of unprofitable businesses.

Global demand for PCs is decreasing.

The news, however, may not be entirely surprising given that Fujitsu had announced it would spin off its PC business in spring 2016, and Toshiba is looking at a drastic restructuring following the discovery of its accounting fraud scandal.

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.

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U.S. computer giant Hewlett Packard recently split itself into two companies, with Hewlett Packard Enterprises handling the servers and storage business and HP containing the lower-margin PCs and printers businesses.

Nikkei: Toshiba, Fujistu, Vaio Explore PC Business Merger