Tokyo, Nov 18: Casio Computer Co, a top digital watch maker, and Hitachi , Japan 's biggest electronics conglomerate, said on Tuesday they would jointly develop mobile phones to cut costs and strengthen overseas sales. The two firms said they would set up a joint venture in April 2004 to take over development, design and procurement from the two firms' cellular phone businesses.

It will be capitalised at three billion yen ($27.6 million) and will be owned 51 per cent by Casio, with Hitachi having the rest.

The move comes as Japan 's mobile phone operators look to third-generation services, which are more suitable for transmitting 'rich content' such as photos and video clips than second-generation services, to fuel profits in a saturated domestic market.
The introduction of photo phones with high resolution pictures has boosted development costs at handset makers. Bureau Report