NEC today confirmed that it will exit the smartphone business. NEC had hoped to sell its smartphone business to Lenovo, but talks between the two companies broke down without a deal earlier this month. NEC said that it will cease the development, production, and sales of smartphones immediately, though it will continue to provide support for existing models. NEC will also continue to operate its cell phone business, which it runs with Casio and Hitachi. "We were late to enter the smartphone market, and we were unable to develop attractive products," said Chief Financial Officer Isamu Kawashima. "That's what it comes down to." NEC recently released the Terrain with AT&T in the U.S.