Feeds

So when will NEC stop making PCs?

Lehmans analyst forecasts withdrawal

  • alert
  • submit to reddit

Intelligent flash storage arrays

Lehmans Brothers analyst Scott Foster has a bee in his bonnet about NEC's PC operations. He reckons the company will withdraw from PC manufacture - even though it has the biggest market share of all in Japan, the world's second biggest market, with over 20 per cent of sales. (Of course NEC used to have more than 50 per cent of the Japanese market with its own proprietary and very expensive PCs).

Why does he think this? We don't know the answer, but we guess it's because lack of success outside Japan means that it cannot command the same economies of scale as its global rivals. And now it can't even make money in its home market, according to an interesting FT article (which reports Foster's NEC prediction) about the Japanese PC market.

Traditionally Japanese PC makers commanded top dollar for feature-packed boxes - now those cosy assumptions are under threat from the likes of Dell and new local player Sotec, which are undercutting the establishment on price - and in the process torching their profits, and at a time of rising PC sales.

Japanese PC makers appear to be abandoning the global market, JP Morgan analyst Hideki Wakabayashi tells the FT. We're not sure whether Fujitsu Siemens would agree with this. The Japanese/German JV PC maker may be weak in the US, but it is a strong player, and especially in Europe, just about everywhere else. ®

PC Headaches hit Japan

Internet Security Threat Report 2014

More from The Register

next story
Facebook pays INFINITELY MORE UK corp tax than in 2012
Thanks for the £3k, Zuck. Doh! you're IN CREDIT. Guess not
Big Content outs piracy hotbeds: São Paulo, Beijing ... TORONTO?
MPAA calls Canadians a bunch of bootlegging movie thieves
Google Glassholes are UNDATEABLE – HP exec
You need an emotional connection, says touchy-feely MD... We can do that
Lawyers mobilise angry mob against Apple over alleged 2011 Macbook Pro crapness
We suffered 'random bouts of graphical distortion' - fanbois
Just don't blame Bono! Apple iTunes music sales PLUMMET
Cupertino revenue hit by cheapo downloads, says report
US court SHUTS DOWN 'scammers posing as Microsoft, Facebook support staff'
Netizens allegedly duped into paying for bogus tech advice
Feds seek potential 'second Snowden' gov doc leaker – report
Hang on, Ed wasn't here when we compiled THIS document
prev story

Whitepapers

Why cloud backup?
Combining the latest advancements in disk-based backup with secure, integrated, cloud technologies offer organizations fast and assured recovery of their critical enterprise data.
Getting started with customer-focused identity management
Learn why identity is a fundamental requirement to digital growth, and how without it there is no way to identify and engage customers in a meaningful way.
High Performance for All
While HPC is not new, it has traditionally been seen as a specialist area – is it now geared up to meet more mainstream requirements?
Storage capacity and performance optimization at Mizuno USA
Mizuno USA turn to Tegile storage technology to solve both their SAN and backup issues.
Simplify SSL certificate management across the enterprise
Simple steps to take control of SSL across the enterprise, and recommendations for a management platform for full visibility and single-point of control for these Certificates.