Toshiba has taken a step back from the retail industry after itnge on demand for sub-$1,000 PCs. canned the Infinia range of consumer PCs from the US market a year after it was launched.
The manufacturer claimed the problem was the fact that more PCs were being sold below $1,000, pushing margin to the point where Toshiba could not compete. Toshiba will continue to sell the kit until inventory runs out, but will refocus its efforts on the corporate and business market.
Murray McKerlie, product marketing manager at Toshiba, said the aggressive shift to low-specification machines had driven the manufacturer out of the market. He claimed Toshiba did not want to pursue its competitors down the price range because it was trying to maintain the value of its brand.
McKerlie refused to rule out the possibility of re-entering the retail market, pointing out that Toshiba could introduce convergence products such as PC TV to exploit the brand in the retail market. Toshiba UK ruled out introducing a retail range in October.
Larry Smith, UK manager of the consumer division at IBM, said he was not surprised by Toshiba's move because the market was saturated.
The Infinia range was priced between $1,800 and $2,500. The market for sub-$1,000 machines has exploded over the last 12 months, at the expense of companies like Toshiba which have ignored the trend. IBM has admitted 'disappointment' at IDC survey results for sales of the Aptiva range in the third quarter ended 30 September. In the UK, the figures were down from 26,000 for the same period last year to less than 5,000 units.
Tweet using #CRNawards to join our live coverage of tonight's Channel Awards
We weed out the key information from the networking giant's Q1 numbers
CRN's Women in Channel role model Logicalis COO Natalie Matthews explains the impact of mentorship, 'imposter syndrome' and why the channel has to do a better job at selling the industry to young people
Mohit Aron claims Cohesity is having the same impact on the back-up market as the smartphone on its own space, while taking shots at the likes of Veeam