Lenovo is said to be in talks with NEC to buy its mobile phone business in an effort to cut its losses after two years of being in the red. Reuters has confirmed sources statements that the two companies are in fact working on a deal to put Lenovo into the mobile phone game.
NEC's mobile phone division is a joint venture with Casio with NEC owning a 70-percent stake in the business. NEC is also said to have talked with domestic buyers, but no deal was struck.
While NEC's phone sales make up just 6-percent of the Japanese mobile phone market, Lenovo could parlay this into an enterprise level smartphone company that could rival BlackBerry. Lenovo already has many corporate clients it could push phones onto as well as a vast and loyal consumer following that would snatch up a Lenovo branded smartphone in a heartbeat.