Sanyo sells handset unit to Kyocera

Way back in October, it was revealed that Sanyo would be exiting the mobile phone business. The speculation was that they’d sell their mobile division to Kyocera, whose handsets you see frequently in the prepaid domain. That sale is said to be taking place now, to the tune of $375 million, though it will go through as 40 billion yen — 50 billion yen if you count the debt that is changing hands.

The Sanyo brand, though, will stay in tact. Kyocera has agreed to take on 2,000 Sanyo employees, too, so you might not see a big change in Sanyo handsets. They will now focus on TVs, home appliance, and solar batteries.

So why did Sanyo decide to leave the mobile realm?

But the company faced “intensified competition from rival companies,” Sanyo said in a statement. “In order to meet the best interest of the business and its stockholders, Sanyo has … concluded that a transfer of the business to Kyocera would be the ideal solution.”

Hopefully it works out for both parties.

[Associated Press]

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