Tiny says UK move will reduce PC prices

PC maker hopes to compete better with rivals Dell and Compaq

PC builder and retailer Tiny's manufacturing shift to the UK will drive down its PC prices, allowing it to compete better with rivals Dell and Compaq, the company claimed.

Tiny announced plans last week to move its manufacturing plants for the UK market from China to Scotland, and also revealed plans to move production of its notebook range to Scotland by September.

The announcement came just a week after rival Gateway said it was withdrawing from the UK market. In the same week, Tiny declared a push into the small to medium sized enterprise sector, using capital gained from the £8m sale of its internet service provider arm, Tiny Online, to Italian web firm Tiscali.

Paul Kemp, business projects director at Tiny, said: "We always push for the best prices in the market, and have always competed with Dell and Compaq. By moving to the UK we can develop key technology and ship the product to customers more quickly."

The move will also save money on logistics and create up to 160 jobs, Kemp claimed. No jobs will be lost in the Far East, he said, adding that the existing manufacturing plant will support Tiny's retail outlets in that region.

Andy Brown, senior analyst at IDC, agreed that the firm had made a wise move. "It makes sense for Tiny to do this because it will save money from a logistics point of view," he said.

Scotland is crying out for investment by IT vendors, he added, and the move demonstrated that Tiny has faith in its home country. "There will be a cost increase in terms of wages and running the plant in the UK, but the move will save money in the long run," said Brown.