NEC reportedly plans smartphone market exit after Lenovo deal falls through

The smartphone maker plans to exit the market amid poor sales and a failed bid to strike a deal with Lenovo, according to reports.

Japanese daily newspaper Nikkei is reporting via Reuters that NEC is planning to leave the smartphone business after a deal with Lenovo fell through.

Read this

NEC mulling mobile phone unit sell-off to Lenovo: report

The Japanese technology firm may be considering a sell-off of its mobile phone unit to Lenovo or others, reports suggest, amid declining sales targets and financial troubles.

Read More

Though the two companies have an existing relationship on PCs, NEC had also been in talks with Lenovo for some time in a bid to try to dig its way out of financial difficulties.

In selling the unit, NEC could drum up much-needed cash to push it back into profitability.

According to the report, NEC offered Lenovo a majority stake in its smartphone making subsidiary, currently held together by Casio and Hitachi as significant investors.

NEC doesn't have much of a presence in the U.S., but made a splash at Mobile World Congress (MWC) in Barcelona with a dual-screen smartphone. Besides an occasional glimpse now and again, there has been little in the way of Western love for the Japan-based electronics maker.

It does, however, have a significant presence in Japan, where it is based. While 5 percent market share does not appear like much in the U.S. or the Western market, for Japan it is a nonetheless significant slice of the pie.