- Toshiba announces its exit from the laptop business. The firm has terminated its 35-year-old laptop business and sold its remaining minority interest to Sharp in its PC market.
Toshiba announces its exit from the laptop business. The firm has terminated its 35-year-old laptop business and sold its remaining minority interest to Sharp in its PC market.
Toshiba sold $36 million to Sharp two years ago for 80.1 percent of its interest in the PC market. Sharp renamed the group to Dynabook after this. Sharp has now exercised the right to buy the remaining 19.1 percent of shares, and Toshiba has released an official statement after the transaction was completed.
“The transfer closed in October 2018, and TCS changed its name to Dynabook in January 2019. On June 30, 2020, under the terms of the share purchase agreement, Sharp exercised a call option for the remaining outstanding shares of Dynabook held by Toshiba, and Toshiba has completed procedures for their transfer,” said Toshiba in a statement.
Toshiba marked the entry into the PC segment by making its first PC in 1985 named T1100. The device came with interchangeable batteries, 256K memory, and a 3.5-inch floppy drive. At that time the Toshiba T1100 was launched at $2,000.
It introduced its ‘Satellite’ range of laptops to take on IBM’s ‘ThinkPad’ series. The company was outsourcing its laptop production until 2015, though it started manufacturing newer models at its facility in China.
During the 1990s and early 2000s, Toshiba was among the top PC manufacturers, but the growth of Lenovo, HP, and Dell made it tougher for Toshiba to continue its success in the market.
Toshiba’s share of the PC market had dwindled from its 2011 peak of 17.7 million PCs sold to about 1.4 million in 2017.
Meanwhile, according to the recent IDC report, the global PC market has grown 11.2% year-on-year. The second quarter of 2020 saw a growth of 11.2% in the global shipments reaching a total of 72.3 million units.
Jitesh Ubrani research manager for IDC’s Mobile Device Trackers, said, “The strong demand driven by work-from-home as well as e-learning needs has surpassed previous expectations and has once again put the PC at the center of consumers’ tech portfolio. What remains to be seen is if this demand and high level of usage continue during a recession and into the post-COVID world since budgets are shrinking while schools and workplaces reopen.”