Toshiba considering PC merger market after weak sales

Toshiba may be looking to sell off its PC division to other computer manufacturers in Japan. The company has already stated that it plans to sell part of its semiconductor unit to Sony Corp.

Through these sales, Toshiba is aiming to cut out the least profitable units of its operation after an accounting scandal that occurred earlier this year.

Toshiba's PC division has a rich history and was responsible for releasing the first commercially available laptop in 1985. Recently though, it has not been able to keep up with the other companies in the PC market. Toshiba has a 2.3 per cent share in the global market for laptops and tablets according to research done by the firm Euromonitor. The company has already made its departure from the desktop market.

The decision to withdrawal from the PC market comes with no surprise as many Japanese electronics companies have already begun to do just this. Fujitsu Ltd announced in October that it had plans to spin off its PC business. Both Hitachi Ltd and Sharp Corp. also decided that the consumer market was no longer viable for them. Panasonic has turned its efforts towards the enterprise market and has been producing laptops with businesses in mind.

Talks of Toshiba's possibly combining their PC division with those of other companies were reported by the Nikkei business daily. The paper suggested that Vaio Corp., formerly part of Sony's PC division, might be considering absorbing Toshiba's PC unit.

The rumour was quickly put down by a spokeswoman for Vaio. Toshiba most likely will be spinning off its PC division but the question of how still remains in the air.

UPDATE: Toshiba Corp. has issued the following statement: "Two Japanese newspapers, the Nikkei and Yomiuri, today reported that Toshiba Corp., Fujitsu Ltd. and Vaio are mulling a combination of their PC operations. These reports are not based on any announcement or information released by Toshiba. At this point, no decision has been made on the PC business."

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