NEC Reportedly In The Process Of Selling Its Cellphone Business To Lenovo

Posted on Mar 29 2013 - 5:48pm by Editorial Staff

Nikkei is reporting and Reuters sources confirmed that the Lenovo is reportedly in talks to buy NEC’s cellphone business. With earlier considering its mobile business as one of an important asset, the company now finally decided to sell the business and that too potentially to Lenovo after facing two years of losses.

“Amid the rapidly changing market we are considering a number of ways to bolster the competitiveness of our mobile phone business, but nothing has been decided,” NEC said in a statement through the Tokyo Stock Exchange on Friday in response to the media reports while there are no words from Lenovo yet.

The NEC mobile business is actually a joint venture business with Casio, of which NEC holds 70 percent stake. Although it has been also reported that NEC is also in talks with local buyers, but no names have been made public yet. According to a statement, NEC hasn’t “discounted any partners in negotiations, including domestic firms.” Over the top, it is interesting to note that NEC’s phone business accounts only of mere 6 percent of the Japanese market.

Well, we will get to know soon that whether NEC’s mobile business ball will enter into Lenovo court or not. In the meantime, stay tuned with us.

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Editorial Staff at I2Mag is a team of subject experts led by Karan Chopra.