In Japan, Nikkei reports on a deal that could re-shape the face of PC distribution, Toshiba, Fujitsu and Vaio might merge their PC operations creating a "top player" holding around 30% share of the Japanese market and 6% of global market (just under Apple's current global ranking.)
Negotiations on the deal should take place sometime in December, with expectations of a combined company launch in April 2016.
Nikkei adds the companies would unite under the Vaio brand name, with the combined entity integrating domestic and overseas operations, from R&D to production and sales.
Toshiba and Fujitsu already have an interest in Vaio-- the companies fund Japan Industrial Partners, the top Vaio shareholder.
Reportedly the idea for the merger comes from scandal-battered Toshiba (CEO Masashi Muromachi describes this PC deal as an "an option"), in part as a means to unload a weak PC division. Fujitsu is also looking to offload its ailing PC division by March 2016, while Vaio CEO Yoshimi Ota tells the Wall Street Journal “if a deal is advantageous to Vaio, we would consider it.”
But would a merger of battered Japanese PC makers leave a dent in the PC market?
Maybe... not. The three companies suffer individually from poor global distribution (Toshiba is stronger in USA, and Fujitsu in Europe, for example). Euromonitor says combined Toshiba-Fujitsu-Vaio 2015 global PC sales share clocks in at 6.4%.
What this merger would do is leave a wake of distribution decisions... two long-time sets of loyal distribution partners will face the option of either adopting Vaio as a brand or dropping a favoured PC brand.
Such decisions are further complicated by the fact that some of the same distribution partners carry a full range of consumer & office electronics products-- now minus the PC products.
The other trend to be noted: the Japanese electronics conglomerates that once defined the consumer markets are retreating and now loooking enviously at the B2B market.
Go Toshiba, Fujitsu, Vaio Mulling PC Business Merger (Nikkei)
Go Vaio Open to PC Consolidation Talks With Toshiba, Fujitsu (WSJ)
