NEC pulls out of global PC market

NEC will cease its non-domestic PC business from July 2009

NEC seems to be nearing the end of its time in the PC market, as the firm has confirmed it will close all but its local businesses.

The Japanese firm has already admitted that the business is struggling across the board and recently announced its intention to close PC operations in Europe, Africa and the Middle East. The firm has now revealed that it will cease production and sales in the Asia Pacific region, leaving nothing but its significant Japanese business.

"NEC has determined that the Asia Pacific PC market for its business holds less potential for expansion, and the company has decided to withdraw from the Asia Pacific PC market in order to focus solely on Japan's PC market, where NEC holds a leading position...from July 2009," the firm said in a statement.

It is likely that the firm is shedding unprofitable businesses as it deals with the recession. Last month, it announced job cuts amounting to 20,000 positions worldwide, and recently warned of expected net losses of more than £2bn for the current business year.

NEC plans to kickstart its changes proper on 1 April as it begins its organisation reform plan in earnest. In February, the firm described its moves as "strategic measures to overcome the challenging economic conditions of the current worldwide recession", adding that from the start of April all firms in the JVC roster will fall under the 'One NEC' concept.