NEC and Lenovo negotiate plans to sell servers in China

Beijing time February 9 afternoon news, NEC announced today, is in talks with Lenovo Group, plans to cooperate in China to carry out server sales business. "This will be a complementary relationship," said Shanyuan, NEC platform business director.　　He said the two companies ' collaboration in the server sector would make it easier for NEC to open the Chinese market, and Lenovo could also expand its product line. NEC is Japan's largest PC and server manufacturer. At present, 84% of the company's sales are from the domestic market and are seeking to ease reliance on the market.　　On the other hand, if the two sides reach an agreement, Lenovo will be able to upgrade its server business and increase product diversity. "The PC market is about to stop growing, and Lenovo is likely to be looking for other areas worth investing in," said Takao Hattori, analyst at T.I.W, a market research firm. NEC is in a difficult position in China and hopes to find a partner. January 27, NEC and Lenovo signed an agreement to set up a joint venture company. The new company will integrate two of the company's PC development, production and parts sourcing operations. Lenovo will hold a 51% per cent stake in NEC's personal product company, NEC, which will transfer all PC business to the new company. The joint venture will produce PCs on a large scale at the NEC Personal products Company's Shanxing County facility in Japan.　　Two companies said it was possible to co-operate in the tablet and server markets.　　In the first 9 months of last year, Lenovo accounted for 10% of the world's PC market, with shipments second only to HP, Acer and Dell, according to IDC, a market-research firm. "Lenovo's server business is far less than NEC in sales, but it has a strong presence in the Chinese market, especially in government-related areas," said Shan Yuan. We have a longer product line than Lenovo can achieve complementary advantages. "NEC plans to achieve a 6.5% per cent increase in server and software business sales over the next two fiscal years, up to 410 billion yen by March 2013 (about $5 billion)." The operating profit of the business could grow from 11 billion yen (about 130 million US dollars) to 20 billion yen (240 million USD) over the next year.　　However, Shanyuan, the expectation did not take into account a possible server sales agreement with Lenovo. But Takao Hattori said: "The cooperation of two companies is likely not to affect each other too much." It won't have a big positive effect, but better than nothing. "(Yan Fei)