Hitachi exits household computer business

Hitachi Ltd. is pulling out of the household computer business in the latest shift among Japanese electronics makers to refocus their sprawling operations.

Hitachi has stopped making PCs for individual consumers since this year's summer models, although the Tokyo-based manufacturer will still build computers for corporate clients, company spokesman Keisaku Shibatani said Tuesday.

The decision underlines increasing competition among global electronics makers and the need for Japanese firms to give up some sectors to keep up with rivals.

Hitachi — whose businesses span nuclear reactors, flat-panel TVs, washing machines and electronic devices such as hard-disk drives — has been losing money and is struggling to turn itself around.

Hitachi's home PCs were sold only in Japan. Personal computers have accounted for less than 1 percent of its annual sales.

The company outsources manufacturing of some of its business-use PCs to Hewlett-Packard Co. of the U.S., Shibatani said.

In personal computers, Dell Inc., Hewlett-Packard Co. and China's Lenovo Group Ltd. have grown so dominant it has become difficult for the smaller players, including the Japanese, to compete.

Last week, Sony Corp. said it will sell its advanced computer chip operations to Toshiba Corp. — a move that will allow both companies to focus more of their resources on their profitable businesses.

The sale, to be completed by March, includes the manufacturing business for the Cell chip used in Sony's PlayStation 3 video game console.