Nokia and Sanyo "No More"
June 22, 2006 - source: BWCS
Mobile giants Sanyo and Nokia said today they have dropped plans to climb into bed together. The news comes a mere four months after the pair first announced a possible get-together in a mooted joint venture.
However, following a series of protracted negotiations it appears the pair have decided to go their separate ways and pursue "other options". Neither company would elaborate on the joint statement issued today.
Back in February of this year it had all seemed so different, then, with the light of new romance glinting in their eyes, the pair had talked at length about their future plans together. At that early stage in their relationship, those ideas included a joint venture aimed at developing and manufacturing advanced mobile terminals. This, the star-struck couple had promised, would underline their ambitions to grow globally in an increasingly competitive mobile market.
The wider mobile world had looked on as the blushing pair mumbled that they would sign up to their commitments in the second quarter of this year and that the new business would be born in the third quarter. Now, however, it appears those plans are over and each partner will go their separate ways.
Plans for the joint venture had included a facility employing up to 3,500 people which would aim to improve both companies' positions in the CDMA market, where each feel they are losing out to Samsung. Together, Nokia and Sanyo said they would target 20% of this market.
Sanyo in particular has been struggling to boost its ailing mobile business and its courtship of Nokia had been one f the few pieces of good news for its shareholders. For its part, Nokia had heralded the relationship with Sanyo as way to boost its presence in the Japanese market.
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