Lenovo, NEC planning smartphone tilt?

NEC and Lenovo planning a global smart phone joint venture, according to reports in Japanese media and wires service Reuters.

Lenovo recently issued a statement conforming it was in "preliminary negotiations with a party in connection with a potential joint venture transaction”.

The Chinese PC giant did not name the partner, but its long-term close relationship with NEC fuelled speculation. The two companies jointly design and develop PCs for the Japanese market.

A union of the Lenovo and NEC smartphone businesses would make sense for the companies as they would gain access to the channel networks and other resources in each other’s home markets, the second and third largest economies in the world. Lenovo in number 3 in the Chinese smartphone business while NEC enjoys a strong market position in Japan.

Lenovo’s VP for APAC and Latin America Milko van Duijl this week told the Wall Street Journal the company "in talks with many people" about a possible partnership, although he declined to comment specifically on reports of a deal with NEC.

NEC told CRN in a statement: “NEC does not comment on market speculation. However, NEC Corporation in Japan is open to considering opportunities that help reinforce NEC’s mobile phone business.”