NEC Group of Japan is in discussion with Lenovo Group Ltd as to the sale of the former's mobile phone unit. This was confirmed by an anonymous source who spoke on condition of anonymity, confirming news reports on the negotiations.

Aside from Lenovo, NEC is also in discussion with domestic purchasers too. While NEC said that its mobile phone business is an integral part of its overall operation, the losses of the past two years has forced the hand of the company to shed losses to boost profitability.

In a statement made through the Tokyo Stock Exchange, "Amid the rapidly changing market, we are considering a number of ways to bolster the competitiveness of our mobile phone business but nothing has been decided."

Last October 2012, NEC cut back on its mobile phone sales target for the fiscal year ending March from 5 million units to just 4.3 million. Lenovo is currently the world's second largest maker of personal computers, is increasing its expansion in the world of smartphones after its initial line gained traction in China.