July 16, 2013 / 6:30 PM / 7 years ago

NEC to exit smartphone business after failed deal with Lenovo: Nikkei

A logo of NEC Corp. is seen at Wireless Japan 2012, a smartphone and mobilephone technology exhibition, in Tokyo May 31, 2012. REUTERS/Issei Kato

(Reuters) - Japan’s NEC Corp plans to exit its loss-making smartphone business after a deal with Chinese PC maker Lenovo Group Ltd failed to materialize, the Nikkei reported.

The two companies have a partnership in the personal computers business and NEC was in talks with Lenovo for a deal for its smartphones operations since late 2012, the Japanese daily reported.

The Japanese electronics company had offered Lenovo a majority stake in NEC Casio Mobile Communications Ltd, its subsidiary that makes smartphones. Casio Computer Co and Hitachi Ltd are among NEC Casio’s current investors.

NEC, once a market leader in the smartphones business in Japan, currently has a market share of about 5 percent, the business daily said.

The Japanese company will now focus on conventional handsets and plans to sell some of its mobile phone-related patents, according to the Nikkei.

NEC will reassign majority of NEC Casio employees to other group firms, the paper said.

Reporting by Rohit T K in Bangalore

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