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26 Jun 2006
NEC Corporation has confirmed its European Packard Bell consumer PC division is on the verge of being sold to an as yet unnamed buyer.
The firm split its PC manufacturing business into two divisions last November: NEC Computers (which focused on the commercial side and operates a channel strategy); and Packard Bell (which focused on consumers and sells through retail). Both divisions have their own chief executive and separate business strategies.
An NEC Corporation representative told CRN: “We are in discussions with a third party and have received an offer for Packard Bell. But we cannot comment any further at this present time. We will continue with the business for commercial PCs.”
Jean-Claude Tagger, chief executive of NEC Computers, told CRN: “We knew that when the two divisions were split, selling part of the company was a likely reason behind it.”
Ranjit Attwal, principle analyst at Gartner, said: “I don’t think NEC has a choice. Packard Bell’s focus is the consumer market and consumer PCs have been subject to margin erosion over the past few months. We think they have had the company up for sale for a while, particularly since the split.”
Attwal added that he does not think any big-name PC vendors would be in the frame, but that it was likely to be either an independent buyer or a firm that is looking to get back into the European market.
sara_yirrell@vnu.co.uk
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