Lenovo has just released the announcement about the joint venture agreement with NEC, the two sides will set up a PC business, Lenovo will hold 51% stake in the new company while NEC holds the remaining 49% of the shares.
Japanese media reported yesterday morning, Lenovo and NEC Computers, a joint venture agreement, the two sides will jointly set up a PC company. At the same time there is news that Lenovo Group Chairman Liu Chuanzhi, CEO Yang Yuanqing has arrived in Japan, the purpose or directed at cooperation in the case. Now it seems that these situations are not rumors.
Lenovo never gives a positive response, in contrast to the cooperation NEC Corporation of Japan has been in the high-profile status in the case.
NEC is Japan’s largest PC business, if cooperated with Lenovo it’s scale can be expanded and also it can expand overseas markets to enhance competitiveness in the global market rivalry. Lenovo as the largest PC company in the Asia-Pacific region, its development in Japan is facing strong competition, the successful integration with NEC’s business resources, can betond the competitors, including HP, Dell, directly in local.
Insiders hold the attitude of both the partnership. Those who are optimistic to this cooperation generally believe that the two sides reached a significant impact in the PC market at the same time. Lenovo Group can be superimposed on the NEC market share, its market share is expected to re-enter the global top three. Through cooperation with Lenovo, NEC can share the supply chain, thereby significantly reducing the cost of procurement of raw materials and production costs, and enhance profitability.
Also part of the analysts believe that this cooperation is full of risks and challenges. The main reason is the NEC still retains some independent factories, while Japan doesn’t have a cost advantage. Moreover, Lenovo has just emerged from the process of integration of IBM’s PC business, the company operates are on an adjustment period, which is a test of the Lenovo Group, the integration and management level to a large extent.
