In Japan’s second cell-phone merger this month, Fujitsu and Toshiba said Thursday they will merge their handset operations … NEC, Casio Computer and Hitachi merged their phone units earlier this month.
Mergers usually happen in a mature industry when there is excess capacity and decreasing growth. In the mobile phone market we’ve seen several companies disappear or merge over the past decade:
- Motorola tried but failed to get itself acquired.
But we’ve just seen forecasts where the smartphone market is growing and is expected to continue growing at 40%. Why is there consolidation in a growing market?