During a news conference earlier today, Lenovo CEO announced that they are forming a joint venture with NEC to focus on increasing sales of personal computers in Japan. With the market focused on mobile products, the joint venture has expressed interest in pursuing developments in that arena as well.
The joint venture will be in the form of a new company called NEC Lenovo Japan Group, with Lenovo owning 51 percent of the company and NEC the rest. The deal is considered a win-win. Lenovo is the world's no. 4 computer maker and NEC is Japan's most popular PC brand. Together, they can outpace global market growth, breakthrough the Japanese market that is usually resistant to foreign brands, keep pace with Taiwanese rival Acer, and also scale up or diversify into other services.
Beyond PCs, it is likely that the new team effort will venture into developing, producing, and selling other devices especially in the mobile arena such as tablets and smartphones. Lenovo CEO was quoted by Reuters to suggest that smartphone development was definitely in their near future.