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Lenovo And NEC In Talks Over Joint PC Venture

Lenovo is reportedly in talks with NEC Corporation to buy a majority share in the Japanese firm's personal computers division.

According to the Japanese business daily Nikkei, the two companies are on the verge of inking a deal which could give Lenovo entry into Japan's local PC market and let NEC build on Lenovo's global presence.

“NEC has made no announcement on this and a decision has not been made,” a spokesperson for NEC told Nikkei.

Japan has a flourishing domestic PC market largely dominated by NEC, Toshiba and Fujitsu, who account for over half of all PC shipped in Japan in the first half of 2010. According to IDC data, NEC had shipped 1.9 million PCs for a 20 per cent share of the market in the country during the period.

But while NEC holds a dominant position in Japan, it has nothing on the worldwide presence off Lenovo, which, after shipping 9.2 million units in the third quarter of 2010, has a global market share of 10 per cent.