Toshiba Exiting U.S. Desktop Field
Toshiba Corp. said Wednesday that it is getting out of the desktop computer business in the U.S. after failing to get more than 1% of the market in four years.
Tokyo-based Toshiba had 13% of the worldwide market in notebook computers during the third quarter and had tried to sell desktop machines to its bigger notebook customers.
But as the market for desktops fell this year for the first time in decades, Toshiba was hurt more than its rivals, said market analyst Roger Kay of research firm IDC in Framingham, Mass.
“They were not as well positioned as some others, and when things started going south, they got hit with a double whammy,†Kay said. “They are another casualty of consolidation.â€
Even some of the biggest PC makers have been taking losses, and IBM Corp. has withdrawn from selling through retail stores.
Toshiba’s U.S. computer unit, based in Irvine, employs about 1,200 people. No job losses are expected, a spokeswoman said.
Separately on Wednesday, Irvine-based EMachines Inc. said it would begin selling computers online and over the phone.
EMachines stock gained a half-cent to 96.5 cents, while Toshiba rose 10 cents to $4.35, both in over-the-counter trading.
