Beginning on the first of February, Fujitsu’s PC and mobile divisions will be spun off as Fujitsu Client Computing Limited and Fujitsu Connected Technologies, respectively, a pair of subsidiaries owned entirely by Fujitsu Limited. Looking forward, all and PC-related operations at Fujitsu will be managed by these new ancillary companies.
This news comes from a press release, published by Fujitsu late last week. The company says the decision to spin off its mobile and PC divisions is a result of the “ongoing commoditization of ubiquitous products,” namely computers and smartphones. With this in mind, differentiation has become an ever-rising challenge for Fujitsu. For that reason, Fujitsu was compelled to start an entire company exclusively for focusing on these developments.
Oftentimes, companies spin off certain divisions into a subsidiary so that important management decisions can be made at a more effective pace. With less people to report to in the corporate executive chain, things can get done faster and, likewise, new and subversive products can release expeditiously without compromise. Or, as Fujitsu itself puts it, spinning off the two divisions will give it the chance to “establish an integrated system covering all aspects of research, development, design, manufacturing, sales, planning, and after-sales services.”
Both its mobile and computing subsidiaries will be treated equally by Fujitsu, with the parent company allocating 400 million yen and 8,000 shares per branch. This means that, following the transition, Fujitsu Limited’s value will appear to steeply decline from its current 324,625 million yen and 2,070,018,213 shares.
Earlier this month, it was rumored that Fujitsu would be combining its PC operations with Toshiba and former Sony brand, Vaio, from the research and development stage all the way to production and sales. It’s unknown at this time whether this news will obstruct those alleged arrangements.