Independent market research firm Strategy Analytics applauds Kyocera’s acquisition of Sanyo Electronics’ mobile handset division. Having gained important scale in the takeover, Kyocera will now face the formidable challenge of leveraging Sanyo’s resources to drive growth in important 3G product segments.
Neil Mawston, associate director at Strategy Analytics, commented, “The combined entity of Sanyo Electric and Kyocera Corp. registered a global market share of 10 percent in CDMA handset shipments during the third quarter of 2007. This gives them greater scale-economies. Kyocera-Sanyo is now the clear number four vendor in this market and they are breathing down the necks of LG, Motorola and Samsung in the three places above.”
Chris Ambrosio, director at Strategy Analytics, added, “This acquisition gives Kyocera important design resources and high-tier CDMA products that it failed to develop on its own. Whether Kyocera can integrate Sanyo’s resources and churn out a compelling line of new products will be the acid-test for 2008. In W-CDMA handsets, in particular, Sanyo has so far largely failed to penetrate the global market. Even with the acquisition, we expect it will be a monumental task for Kyocera to move into that fiercely-competitive 3G market in the future.”