NEC quiet over channel exit

Partners say vendor's stop-start channel policy contributed to its downfall

NEC is remaining tight-lipped about the effect that its exit from the EMEA corporate PC market will have on its channel.

After accumulating operating losses from intense pricing pressure and cut-throat competition, the Japanese vendor has admitted it is winding up its desktops and notebooks business in EMEA.

As a result, more than 400 jobs will be axed from NEC’s EMEA operations. The vendor’s “reorganisation project” also includes shifting focus to its server and infrastructure business.

Last year NEC vowed to cease direct sales in the UK, but resellers claimed the vendor’s inconsistent channel policy contributed to its demise in the PC market.

Lee Bevan, managing director of VAR Leapfrog AVIT, said: “To blame it on the current economic crisis

is an insult when the blame should be placed on NEC previously switching its model.
“If you turn your back on the channel, it will only end in tears.”

Shaune Parsons, managing director of reseller Computer World Wales, said: “It is like a minefield out there. With the likes of Dell, HP, Lenovo and Acer, the smaller vendors do not stand a chance against the competitive deals they offer,” he said.