Lenovo will use the Rakuraku and arrows brands to create a new company under its mobile business group
Lenovo has completed the purchase of FCNT Ltd’s assets, which include the arrows and Rakuraku smartphone brands in Japan. Lenovo will use these new assets to create a new company under its mobile business group.
The new company will retain the name FCNT and its branding, but will include new product development, sales and servicing.
“The deal builds on Lenovo’s long heritage and commitment to Japan as one of the company’s most important business markets in the world – and where the Group already holds an important leadership position in the Japanese PC market,” Lenovo said in a press release.
For Lenovo, the deal strengthens its position in the smartphone market in Japan, and for FCNT, the deal comes during a tough time. Prior to its agreement with Lenovo, the Japanese company filed for bankruptcy protection, and was struggling with stagnant sales, as well as additional factors such as the depreciation of the yen and the ongoing global semiconductor shortage.
More broadly, Japan’s smartphone market is taking a hit, evidenced by Kyocera — an even bigger smartphone player than FCNT — closing its consumer-oriented mobile phone business in May this year. According to Kyocera President Hideo Tanimoto, disappointing profits were the reason behind the exit.
