NEC to exit PC markets in EMEA report claims

European PC business closing in face of tough competition and poor demand, according to reports

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By  Mark Sutton Published  February 7, 2009

Hardware vendor NEC has said that it may exit the PC market in the Europe, Middle East and Africa region, due to poor demand and tough competition.

The Japanese vendor told Reuters that it is speeding up restructuring, which will include pulling out of weak businesses and cutting some 20,000 jobs worldwide.

Later media reports claimed that the company is closing its European manufacturing subsidiary in France and will outsource server manufacturing for the region.

While NEC leads the PC market in Japan, the company is outside of the top five vendors in most EMEA markets, and is making a loss in the PC business in Europe. The company is predicting a $3.2 billion annual net loss.

According to Japan’s Nikkei newspaper, NEC will pull out completely from the EMEA region, leaving its PC business just operating in Japan.

In November NEC told Channel magazine that it was reviewing its channel strategy for the Middle East, and that it has restructured its business for the region, to treat the Middle East as a separate territory, rather than being grouped with Eastern Europe and Turkey.

NEC Middle East confirmed that it would cease its PC business in the region, and continue to focus on its servers and infrastructure lines, which have been the company's main area of operations in the region.

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