Lenovo and Fujitsu may have come to an agreement under which the Chinese computer manufacturer could garner full control of the Japanese company’s PC business enabling the latter to focus on IT services and other business.
The report comes courtesy Nikkei business daily which suggests that the two companies are likely to reach a deal by the end of this month under which as many as 2,000 Fujitsu employees will be moved to Lenovo. Beyond the employees, Fujitsu could also transfer its design, development and manufacturing operations to newly form joint venture that will be led by the Chinese company. This may not be the course of action for Lenovo and if that’s the case, Fujitsu may opt to buy a majority stake in the Japanese company’s PC unit, the report claims.
While the reports indicate a takeover by Lenovo, Fujitsu says that it is considering all the options at its disposal and that it hasn’t made any decision in this regards. Lenovo on the hand declined to comment on this matter. Mobile devices including smartphones, tablets and hybrids have taken a toll on global demand for PCs and quite a few companies have been at the receiving end of this decline in the form of reduced sales and decline in profits.
In the second quarter of this year, worldwide shipments of PCs were stronger than expected, but nonetheless shrank 4.5 percent from a year earlier to 62.4 million units, according to technology research company IDC.
Lenovo accounted for 21.2 percent of those shipments followed by HP Inc with 20.8 percent and Dell Inc with 16 percent. Asustek computers Inc had a 7.2 percent share while Apple Inc held 7.1 percent.