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Fujitsu not to make 3G handsets for consumersdate: June 21, 2001 Naoyuki Akikusa, chief executive of Fujitsu said it is to withdraw from the consumer market in 3G mobile phones and will not provide consumer handsets to DoCoMo FOMA services. He said, Fujitsu was too small to compete directly against US and European compaines such as Nokia and Motorola and will release handset devices only for business enterprise use. This highlighted the problems faced by smaller handset manufacturers coming up against established players. "In the immediate sense, we see the business market for 3G applications as the one that's being developed first and fastest, and that's our area of concentration,'' a Fujitsu spokesman said. Most Japanese handset makers have been counting on 3G for a fresh break into the European market. But analysts believe that the heavy investment necessary for 3G will precipitate a dramatic consolidation among Japan's 10 largely unprofitable handset makers and Fujitsu's decision is one of the first signs of such a reorganisation. Mr Akikusa said he planned to focus on 3G infrastructure such as base stations, where Fujitsu has a strong reputation with DoCoMo, and business-use terminals to take advantage of expertise in computers and semiconductors.
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