TOKYO and DENVER, United States—Toshiba, a leading vendor in Japan, announced that it is going to launch Toshiba-branded mobile handsets in the U.S. market in 2003.
As a first step for exploring the U.S. market, Toshiba will increase its stake in Audiovox Communications from its current 5 percent to 25 percent. Toshiba purchased for US$32 million the additional shares and an US$8.1 million subordinated convertible note .
Toshiba currently provides its handsets to Audiovox Communications, the second-largest vendor of CDMA-based handsets in the United States, on an original equipment manufacturer (OEM) basis.
Fully using the sales networks of Audiovox Communications, Toshiba will launch CDMA handsets with movie data transmission function in 2003. Toshiba is targeting to ship 8.5 million units of the handsets in 2004 in the U.S. market.
Under terms of the agreement, Audiovox will, among other things, sell Toshiba products on an exclusive basis in North and South America, as well as brand certain Audiovox wireless products with the Toshiba name.
