According to the Nikkei newspaper reported that the Japanese electronics maker NEC and Lenovo Group's mobile phone business cooperation talks broke down, NEC decided to exit the smartphone market, NEC's mobile business company Casio Mobile Communications Company's accumulated losses of more than 60 billion yen.
Lenovo and NEC's PC business, there is a co-venture established in 2011 two NEC Lenovo Japan Group, which accounted for 51% of Lenovo's shares, and the remaining 49% held by the NEC, the two sides co-development, production, sales for the Japanese market PC products. This cooperation can be reached mainly because of Lenovo Group's overseas expansion strategy, NEC's PC business in Japan, there is a certain basis, eager to enter the Japanese market, Lenovo Group, just to open the regional markets.
NEC's mobile phone business is mainly a Casio Mobile Communications Company's operations, the company is determined by NEC, Casio Computer and Hitachi joint venture between the three companies, NEC is primarily responsible for business operations.Although the smart phone industry's rapid development, NEC's mobile phone business inadequate investment in research and development, resulting in product innovation and disruption, the Japanese electronics industry also fell into recession, the current Casio Mobile loss reached 60 billion yen. And based on the Lenovo PC business in good cooperation, NEC hopes to replicate the PC business model to the mobile phone business, NEC Casio proposed to allow the injection of Lenovo Mobile and holds a majority stake.The last two years to actively expand its mobile phone business Lenovo Group, many outgoing messages will be involved in acquisition, Lenovo executives also said to be well in the global market development Lenovo's mobile phone business, does not exclude the possibility of the acquisition of the international mobile phone brands, Recently had even heard the news Lenovo will acquire Blackberry, Casio mobile communications companies seem difficult to meet the strategic needs of Lenovo Group, the product strength, brand influence, business scale on NEC's mobile phone business is difficult to achieve the requirements of Lenovo, the two sides have not can eventually reach an agreement.
And after the breakdown of negotiations Lenovo, NEC decided to quit the smart phone industry. NEC Casio Mobile Communications Company is a subsidiary of its independent accounting, for the NEC will not cause much impact.
