NEC And Lenovo Joint Computer Venture In Japan Announced

The computer market is very competitive with so many of the machines having the same or very similar features many consumers look at notebooks as a commodity today. The effort to grow business and market share at times comes down to how cheap computers can be sold. One key for makers to sell cheaper is to buy components cheaper, which means larger quantity purchases are needed.

NEC and Lenovo have announced a joint venture in Japan that will make the NEC Lenovo Japan Group the largest PC provider in Japan. The figures show that the new venture will have 25% of the Japanese computer market. The venture will also have a very strong corporate and business sales volume. The transaction landed NEC $175 million through an issue of shares in Lenovo.

The joint venture is owned 51% by Lenovo and 49% by NEC. Lenovo's Roderick Lappin is Executive Chairman with Lenovo's Hideyo Takasu is the president and CEO. The companies both promise improved support for users in Japan and lots more thanks to the new venture.