updated 08:57 am EDT, Fri March 29, 2013
Sale of phone section could bring NEC back into profit
NEC is reportedly in discussions with Lenovo over the possible sale of its mobile phone unit, in an attempt to return to profitability. It is also claimed that NEC is in negotiations with other potential buyers for the section, as the company tries to turn itself around after enduring two straight years of losses.
A statement by NEC through the Tokyo Stock Exchange reads "Amid the rapidly changing market we are considering a number of ways to bolster the competitiveness of our mobile phone business, but nothing has been decided." Anonymous sources of Reuters claimed the negotiations for sale were underway, but would not mention who were in talks with the company, aside from Lenovo. NEC has already worked with Lenovo in the past, forming a pact to help drive its PC business, making NEC's choice of potential suitor for its mobile business fairly logical.
NEC's struggle last year reached the point where it declared it would drop 10,000 jobs, following financial estimates at the time suggesting it would be making a $1.3 billion loss. Most of the jobs were said to be culled from its mobile business.