Business News

Published: Friday March 29, 2013 MYT 12:00:00 AM
Updated: Wednesday April 24, 2013 MYT 2:11:49 PM

Japan's NEC in talks to sell mobile phone unit to Lenovo

TOKYO: Japan's NEC Corp is in talks to sell its struggling mobile phone unit to its personal computer venture partner Lenovo Group Ltd, a source familiar with the discussions said, confirming media reports of the negotiations.

NEC is also in talks with potential domestic buyers, the source said on condition that he wasn't identified.

NEC has until now said its mobile business is an important part of its overall operations. But after two years of losses the company is shedding assets to bolster profitability.

"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.

Lenovo officials could not be immediately reached for comment.

Last October, NEC cut its mobile phone sales target for the year ending March to 4.3 million from a previous estimate of 5 million units. Lenovo, the world's No.2 maker of PCs, is cranking up overseas expansion in smartphones after solid growth in China.

Tags / Keywords: News, Business, Japan's NEC, mobile phone unit, Lenovo, Business