Nokia and Sanyo join mobile forces

Beleaguered Japanese electronics manufacturer Sanyo Electric today announced that it will join forces with Finnish telecoms giant Nokia to develop phones that use the CDMA 2000 standard.

The pair stated that they hope to increase their share in regional markets where they have lagged to date. Industry observers generally applauded the deal as likely to benefit both companies.

"The increase in the combined market share with Nokia would be a positive in our view," said Nomura Securities analyst Eiichi Katayama in a report on Sanyo issued in response to market rumours before the deal was formally announced today.

A Japanese newspaper reported that Sanyo would hold a majority stake in the venture, but the two companies did not confirm this.

Sanyo Electric, which manufactures a wide range of consumer electronics and other products, has struggled to generate a positive cash flow in recent quarters.

"We still see no prospect of a return to net profits," said Katayama in a research note published at the end of January.

The analyst said today that, although the deal could lead to a doubling in consolidated sales and reduce development costs, Nomura is still uncertain about the earnings impact.

See also:

Japanese mobile firms target children

Under-tens among last untapped buyers in mobile-saturated nation  08 Feb 2006

Nokia gets aggressive on Wi-Fi

Enterprise phones to get wireless as standard  23 Nov 2005

Qualcomm slaps Nokia with GSM patent suit

Alleged infringements pertain to use of cellular technology in the US  07 Nov 2005

Solid methanol promises battery breakthrough

New technology makes methanol a safe source of power for portables   27 Oct 2005

Airbus hangs up on CDMA phones

No connection at 30,000 feet for most US users  14 Jul 2005

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