Toshiba will continue to manufacture and sell desktop PCs in Europe, despite pulling out of the desktop market in the US.
"The US has its own strategy, and given the size of its market and the growth forecast, it is now focusing on mobility solutions because it does not feel the desktop message is strong in the marketplace. But in Europe it is still a strong message," said Gary Evans, head of business development in the UK at Toshiba.
The company cited the fact that it had never achieved a one per cent share of the US desktop market as a reason to end the range.
"If customers in the UK like the Toshiba desktop offering we will continue to produce them, but our main focus is on mobility and wireless computing technology," said Evans.
He said that most of the company's desktop business in the UK is with the public sector and the company will continue to provide products to customer requirements via its indirect channel.
A recent Gartner report had Toshiba as the second highest-selling mobile computing vendor in the UK in the third quarter ended September. But the company has struggled to build marketshare in the desktop space.
Evans said: "Although we have a less than one per cent share of the UK desktop market, the business is profitable. The volume may not be large but it is an important supporting product."
Industry analysts said this move is not a surprise, and they anticipate that a small number of vendors will dominate the desktop market.
"The desktop market is all about economies of scale, and it is becoming increasingly difficult for vendors to build a strong business now that the market is saturated," said James Governor, an analyst at Illuminata.
"Toshiba almost created the notebook space and is very strong. The fact that they are not the number one notebook manufacturer now suggests they should refocus and concentrate on becoming number one in that market," he said.
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