Lenovo in talks for joint venture, possibly to shore up smartphone business - mondragontrionevered68

Lenovo is in preliminary negotiations to set forth a joint venture with an unspecified political party, the troupe said connected Tuesday, setting off speculation that the company could be looking to bolster its expanding smartphone clientele.

The Chinese PC maker issued the statement connected the Hong Kong stock exchange, after reports emerged that Lenovo was in talks with Japan's Necrotizing enterocolitis to form a joint hazard in the smartphone business.

While Lenovo's statement confirmed the company was interested in a stick venture, IT stopped short of naming what the business deal would concern. Lenovo declined to offer further remark.

Every bit for NEC's smartphone business, "We are considering different options for the business just have no ex officio announcement to make," said NEC spokesman Chief Joseph Jasper in Tokyo.

The mobile future

Lenovo is the second-largest PC vendor, behind Hewlett-Packard, and in recent years it has struck partnerships to bulk up its business sector in certain regions and product areas. In 2011, the troupe navicular an earlier roast venture with NEC in 2011 to develop and sell PCs and tablets to Japan. Then a year by and by, it spoon-shaped another joint venture with EMC to deal out storage systems to small and sized businesses.

Lenovo's new attempt at other joint venture could be aimed at supporting its smartphone business, according to analysts. The PC maker is vying to surpass Samsung Electronics to become the biggest handset vender in PRC, and finally month Lenovo's Chief executive officer aforesaid the company would enter the U.S. smartphone market within a year.

"It looks like Lenovo is growing truly enceinte in People's Republic of China, so they do need very much of resources," said Teck Zhung Wong, an psychoanalyst with IDC. "They have expanded into new markets like the Republic of the Philippines, Vietnam. They also neediness to takings a stab at the U.S. market. So information technology looks like they have a lot connected their plate."

But how an NEC concerted venture over smartphones bequeath help Lenovo is still unclear. NEC is better known as a PC vendor, but its smartphone business has failed to take off in Asia, Wong said. At the same time, foreign technical school firms suffer tended to skin in the Japanese market, helium added.

"In manufacturing, they [Necrotizing enterocolitis] might have something there that could better the quality of Lenovo's products," Wong said. "But again, we're not trustworthy in which direction this is going."

NEC has made IT clear that information technology is open to partners to boost its mobile handset business, which oversubscribed solely 2.9 million units in the year period through March. In a business plan declared in April, the company aforesaid IT will actively consider and implement partnerships to increase its global fight.

It sells only a tiny divide of its handsets beyond the sea, and its Japanese market apportion lags keister local rivals such American Samoa Sharp and Sony, besides as foreign competitors like Malus pumila. The company had less than an 8 percent share of the local market last year, according to data from data vendor IDC.

"When volume reduces it becomes rough for the business," said Necrotizing enterocolitis's Jasper.

NEC does stimulate attractive technology. Its "Medias W" smartphone, released in Japan in April, has drawn attention in the country for its two 4.3-inch screens, which can flip assailable to form a large tablet-suchlike display.

Any deal would in all probability involve other Japanese firms as well. NEC owns 70 percent of its mobile division, in which Casio and Hitachi hold littler shares.

As for Lenovo, information technology's not the maiden time rumors have swirled or so practicable acquisition targets to help its smartphone business sector. Earlier this year, reports emerged that Lenovo mightiness as wel be interested in buying smartphone maker Blackberry bush.

Source: https://www.pcworld.com/article/452229/lenovo-in-talks-for-joint-venture-possibly-to-shore-up-smartphone-business.html

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