NEC abandons overseas PC market

 

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By Reuters

Posted on 30 Mar 2009 at 08:31

NEC has announced it will halt production and sales of PCs in the Asia-Pacific region from July, a move that withdraws it completely from the oversea PC business.

The announcement comes just a month after it signalled a withdrawal from the PC business in Europe, Africa and the Middle East amid slumping demand and tough competition.

NEC has warned it will post a net loss of $2.96 billion for the business year ending this month, and is accelerating restructuring efforts, which include pulling out from weak businesses and cutting more than 20,000 jobs worldwide.

Competition with rivals such as HP and Dell have been fierce and NEC sold its retail PC business in Europe in 2006.

NEC sells about one-sixth of its annual global sales of three million PCs outside of its native Japan, where it will continue sales.