NEC to no longer market and distribute PC and notebooks in Asia-Pac w.e.f June 2009, sheds 270 jobs in Malaysia.

Notification to NEC Personal Computer End Users and customers:

This is an important announcement to all our valued customers and end users.

We are very appreciative of your loyalty and support for the purchase and/or use of the NEC branded Personal Computer products. We want to take the liberty to inform you as early as possible that NEC Computers Asia Pacific Sdn Bhd will no longer market and distribute personal computers and notebooks bearing the trade mark of “NEC” with effect from June 2009. NEC Computers Asia Pacific shall continue to provide after sales services and support under its warranty and spare part commitments. For service and spare parts purchase, end-users and customers of NEC PC products can continue to contact our Call Center or our Authorized Service Providers until further notice. However, you may still purchase our current products inventory from our Authorised Resellers and be assured of our best service and support.

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CrunchGear:

Production as well as sales in all South East Asian countries will be shut down as early as this July. NEC Computers Asia Pacific, a subsidiary based in Malaysia, will have to fire 270 people. The subsidiary achieved sales of $53 million for the current fiscal year, which obviously wasn’t enough.

In Europe, PC operations will be stopped this summer (after 28 years). NEC shipped a total of 3 million PCs last year, 2.5 million of them in Japan.

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News Report via Reuters:

Japan’s NEC Corp will halt production and sales of personal computers in the Asia-Pacific region around July, a spokesman said on Saturday, in a move that would see it pull out completely from the loss-making PC business overseas.

NEC, which has the top PC market share in Japan, last month signaled a withdrawal from the PC business in Europe, Africa and the Middle East amid slumping demand and tough competition.

NEC has warned it would post a net loss of 290 billion yen ($2.96 billion) for the business year ending this month, and is accelerating restructuring efforts, which include pulling out from weak businesses and cutting more than 20,000 jobs worldwide.

Competition with rivals such as Hewlett-Packard Co and Dell Inc has been fierce and NEC sold its retail PC business in Europe in 2006.

NEC sells about one-sixth of its annual global sales of 3 million PCs outside Japan.

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