Lenovo plans smartphone joint venture
Stock exchange statement refers to unnamed party in new handset project
China's Lenovo Group today announced it was pursuing a joint venture with an unnamed party to bring a new smartphone to market, Reuters reported.
In a written statement to the Hong Kong Stock Exchange the world's number-two shipper of PCs said: "As at the date of this announcement, no material terms concerning the Potential Transaction have been agreed and the Company has not entered into any definitive agreement in relation to the Potential Transaction."
Japanese media previously reported that Japan's NEC Corp would collaborate with Lenovo on a smartphone project, with a spokesperson for the Japanese company admitting that its mobile phone business was in a "difficult state".
Lenovo has already been estimated by one industry research company to have grabbed the number-one spot from HP regarding global PC shipments, although this was for a single quarter's business. Nonetheless, the Chinese manufacturer's growth and acquisitions of Brazilian electronics maker CCE last year, Germany's Medion in 2011 and IBM's PC business in 2005, have led to speculation that troubled HP might be dislodged from its market-leading spot in the end of the year.
In the midst of a boom in demand for smart mobile devices, Lenovo has already been building Android-based smartphones and tablets and is now the second largest smartphone maker in its domestic market. Rumours have also circulated that the company's latest acquisition targets include Nokia Oyj and BlackBerry.
However Lenovo urged shareholders to be cautious.
"Shareholders and potential investors should note that the Potential Transaction may or may not proceed and are reminded to exercise caution when dealing in the securities of the Company," it said in its HKSE statement.