Fujitsu is working on a Android based smartphone according to a Japanese portal sankeibiz.  According to report Fujitsu plans to release the Android powered smartphone in 2011.

Fujitsu currently do not have a smartphone product line. However, sales of smartphones is growing in the Japanese market. 

While smartphone's market penetration in Japan is not huge as it is in the US, however its rapidly headed in that direction.

According to the Research Institute of Japan, smartphones accounted for 3.1 percent of all mobiles in 2008 and in fiscal 2010 7.7 percent is expected. Fujitsu aims to capture domestic demand by adding to the rapidly growing smartphone lineup.

Sony and Sharp have already begun manufacturing Android-powered devices in popular response to the 3G iPhone in Japan.

with 4G LTE on door it seems Japanese handset vendors are also getting ready for there share of smartphone market.