Hitachi pulls out of household computer business

TOKYO: Hitachi Ltd is pulling out of the household computer business in the latest shift among Japanese electronics makers to refocus their sprawling operations.

Hitachi has stopped making PCs for individual consumers since this year's summer models, although the Tokyo-based manufacturer will keep making some kinds of computers for corporate clients, company spokesman Keisaku Shibatani said.

Hitachi's decision underlines increasing competition among global electronics makers, and the need for Japanese companies to give up some sectors to keep up with rivals.

Hitachi -- whose businesses span nuclear power reactors, flat-panel TVs, washing machines and electronic devices such as hard disk drives -- has been losing money and is struggling to turn around.

Hitachi's home personal computers were sold only in Japan. Personal computers account for less than 1 per cent of annual sales. Hitachi outsources manufacturing of some of its business-use PCs to Hewlett-Packard Co of the US, Shibatani said.

In personal computers, Dell Inc, Hewlett-Packard Co and China's Lenovo Group Ltd have grown so dominant that it is harder for the smaller players, including the Japanese, to compete.

Last week, Sony Corp said it's selling its advanced computer chip operations to Toshiba Corp -- a move that will allow both companies to better focus their resources on profitable businesses.

The sale, set to be completed by March, includes the manufacturing business for the “Cell” chip used in Sony's PlayStation 3 video game console.