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NEC plans to pull away from the worlwide PC market

Written by IT News on 1:33 AM

NECNEC, one of Japan's leading makers, recently announced that it intends to reorganize its business and that the computer is about to disappear from the market outside the Asia-Pacific region. According to the company is the main reason for the recent decision is a slum ping demand and strong competition. As a result, NEC will focus on its PC sales in Asia Pacific and the market will also be forced to cut part of its workforce worldwide.

According to preliminary data, NEC expects a net loss of approximately 290 billion yen ($ 2.96 billion) for the year ending March 31, 2009. In addition, the company plans to accelerate its restructuring plans, which include a withdrawal of the weaker, and to reduce its workforce by approximately 20,000 employees worldwide. According to NEC, the latest restructuring plan is the result of strong competition that has had to manage from larger competitors such as HP and Dell.

NEC will withdraw from the PC in Europe, Africa and the Middle East, because of slum ping demand and fierce competition. The decision seems justified, given that the global PC business, with 3 million personal computers, only one sixth of the NEC is that sales outside of Japan.

The news should ultimately benefit all the main suppliers of computers, such as HP and Dell, which now has a smaller competitor to worry about. On the other side of things, a market with more competitors can benefit the end user, has a wider range of options and can ultimately get the best offer.

NEC has made an effort and has also entered the emerging market for small size, low power portable computer systems, also known as netbooks. The company's products, dubbed Netbook Lavia, designed around the same Intel Atom platform, as most of its competitors in the market, making it difficult for the NEC to establish itself as a leading supplier of Netbook.

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