New Fujitsu-Lenovo Alliance May Mean More Consolidation in PC Market

Fujitsu Ltd. shares surged to a nine-month high after the Japanese company revealed it was in discussions with China’s Lenovo Group Ltd. about collaborating on everything from research and computer design to manufacturing.

October 27, 2016

1 Min Read
New FujitsuLenovo Alliance May Mean More Consolidation in PC Market
New Fujitsu-Lenovo Alliance May Mean More Consolidation in PC Market

By Pino Vallejo

Fujitsu Ltd. shares surged to a nine-month high after the Japanese company revealed it was in discussions with China’s Lenovo Group Ltd. about collaborating on everything from research and computer design to manufacturing.

The stock gained 7.8 percent in Tokyo on Thursday after both companies announced they were exploring options for cooperation. That comes as Lenovo and Fujitsu are said to be considering an outright merger of their computer businesses, with the Chinese company taking a majority of the combined operation.

Japan’s personal-computer makers have been scaling back their operations or exiting the business entirely, as more people use mobile devices to check e-mail, manage their finances and access the web. Fujitsu had been struggling to find a partner. Details of any tie-up with Lenovo were still under discussion, Fujitsu said.

An alliance with Fujitsu would give Lenovo, the world’s biggest PC maker, a broader foundation to expand its share. Lenovo had 19.4 percent of the global PC market in 2015, compared with 2.1 percent for Fujitsu, according to IDC. Lenovo is also seeking to make further inroads into smartphones, while embarking on a plan to cut $1.35 billion from annual costs and eliminate 3,200 jobs.

 

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