tech

NEC, Lenovo finalize deal to become Japan’s No. 1 PC company

12 Comments

Lenovo and NEC Corp on Monday announced the launch of NEC Lenovo Japan Group, which becomes Japan’s biggest PC provider. According to recent analyst figures, the new group will total nearly 25% of Japan’s PC market, with a strong presence in both the commercial/government sector and in consumer sales.

The group will leverage the complementary strengths and expertise of NEC and Lenovo to provide greater value to users and partners in Japan offering competitive and innovative products and combining high standard services.

“We are proud to announce the launch of NEC Lenovo Japan Group. We have been engaged in extensive talks with NEC since the announcement of the joint venture in January to further mutual growth and cement our foundation for delivering innovative, high-quality products and services to Japanese customers. We would like to stress again that we are fully committed to the Japanese market and we are determined to continue to lead the PC industry in Japan and expand this strategic alliance beyond the PC business,” stated Yang Yuanqing, CEO of Lenovo.

Based on the strategic alliance between NEC and Lenovo, NEC Lenovo Japan Group comprises of three companies: the holding company, Lenovo NEC Holdings B.V., newly founded on July 1, and its 100% owned subsidiary companies, NEC Personal Computers Ltd, newly formed by separating NEC’s PC business unit from NEC Personal Products Ltd, and Lenovo Japan Ltd. As a result of this transaction, NEC has received from Lenovo $175 million through an issue of Lenovo shares.

NEC and Lenovo both hold stakes in the joint venture (51% by Lenovo and 49% by NEC). Roderick Lappin, president of Lenovo Japan Ltd, is executive chairman of the joint venture whilst Hideyo Takasu, president and representative director of NEC Personal Computers Ltd, is President and CEO.

“With this alliance, both companies will continue to progress and be committed to Japanese PC users as well as contributing more to the growth of the PC market in Japan. We will also strengthen our efforts to achieve the No. 1 customer satisfaction for our quality, function and service. Furthermore, based on this strategic partnership, we will continue to discuss and assess new opportunities with this global partnership,” stated Nobuhiro Endo, president of NEC.

The companies are inviting customers to celebrate the launch of the new joint venture with a program that will offer one million yen worth of prizes through NEC Direct and Lenovo Shopping, shopping sites belonging to both companies. Winners will be selected by lottery. Details of the “NEC Lenovo Japan Group Launch Celebration Campaign,” which runs until Aug 4, are available at http://campaign.nec-lenovo.jp/.

Along with the formal launch of the joint venture, NEC Lenovo Japan announced the following two new initiatives to enhance the customers’ experience in technical support:

1) NEC’s “Product Help Support” service, provided by 121 Contact Center, will now extend free technical support beyond the first year. Previously customers had to pay for a second year of support, but from January 2012, customers will receive free support for the lifetime of their PC ownership. This free customer support service will enable NEC to further enhance the user experience by making the company’s trouble-shooting service more readily available. Terms of the product support service for enterprise customers will remain unchanged.

2) NEC Personal Computer Ltd. will bring its extensive know-how in customer services to the joint venture, and will be entrusted with Lenovo’s telephone-based consumer PC support service in Japan from October 2011. This will help Lenovo deliver even stronger local support to its customers in Japan. Terms of the product support service for enterprise customers will remain unchanged.

The new group will maintain the Lenovo and NEC brands and each product will continue to be sold through their existing respective sales channels. By combining the strengths of the two companies such as NEC’s extensive experience in Japan and Lenovo’s global scale in supply chain and procurement, Lenovo and NEC will bolster their product development structures and deliver high-quality, high-performance products.

© Business Wire

©2022 GPlusMedia Inc.

12 Comments
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Or in other words, a sell out to China.

The majority stakeholder,in this case Lenovo,will simply supply all the computers and by doing so gain a hugh access tothe Japanese market. Loss for Japan ,Gain for China.

Will this work the other way round. Bet it won't. From experience, you cannot trust a Chinese company one inch.

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It had to happen sooner or later. There's just too much money, notebook expertise and manufacturing capacity in China not to ignore.

In other news, did you know that they've found massive amounts of rare earth deposits in the seabeds around Hawaii and Tahiti? China's politically-motivated rare-earth export slowdown last year encouraged the world to find a more "reliable" source and now they are on the verge of losing their supply monopoly. Talk about payback!

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**** Holdings B.V. Some sort of Dutch Limited Liability Company created for tax purposes? Looks like someone has been doing their homework to minimise tax payments.

Wonder if they'll bring in some much needed English/ Chinese language support to users here?

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Lenovo is a highly successful company in China and NEC will only benefit from this merger. A very wise move.

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Lenobo, no matter how it evolves, is China. Till it puts on the name "NEC", then it ascends. In a couple of years original Lenobo will disappeare and its fans are going to miss it.

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Don't forget nationalism. Mitsubishi and Isuzu both suffered in sales because of tie-up with US firms. From now on people are going to look at "NEC" with suspicion.

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Would someone please tell me what's wrong with China?

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johninnaha; It breaks easily when dropped on a hard surface and is not suitable for dishwashers.

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@Johninhaha

Chinese companies are world leaders at stealing technology, backed but Gov policies which discriminate against non Chinese competition.

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Stop bashing China. All they do is trade, not colonizing. Some 30 years ago, the world said the same about Japan. Look to where it got. Have you ever thought that by buying cheap Chinese things, you are becoming richer and that means you can invest more in your local economy.

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Foxie said-- Lenovo is a highly successful company in China and NEC will only benefit from this merger. A very wise move.

No, Lenovo will benefit from this merger as they will gain superior Japanese technology. Japanese computers are incredibly well made externally and in internally. Not a wise move for NEC as proven by the latest fiasco of China claiming high speed train technology as theirs, after being given the technology by Japan, France and Germany for their own domestic use.

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"the world said the same about Japan. Look to where it got." I see your argument but no other countries became like Japan. No Korea or any other Asian countries became as successful as Japan. I doubt China will be a competitor in high end products, especially with their attitudes (f you or well f you :))

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