NEC makes majority stake claim for Packard Bell NEC

NEC makes majority stake claim for Packard Bell NEC

- NEC will invest $US225 million into Packard Bell NEC (PB-NEC), and will take a majority position in the ailing PC vendor, officials said this week.

Since PB-NEC is privately held it is difficult to predict if the cash injection will resuscitate the ailing PB-NEC, according to an analyst who asked not to be named.

"There will be no near-term impact on products other than it [the investment] will provide working capital," the analyst concluded.

The moves by NEC boost the Japanese company's investment in the PC vendor to well over $US1 billion. Since taking its first stake three years ago in what was Packard Bell Electronics, NEC has made periodic investments in the vendor with little gain.

PB-NEC last year suffered an ordinary loss of $US487 million on revenues of $US3.9 billion, officials said.

PB-NEC stands as the fifth largest PC vendor worldwide but its market share is eroding, according to IDC. Preliminary IDC figures for the second quarter show the vendor's worldwide share, based on unit shipments, dropping to 4.5 per cent from 8 per cent a year ago.

In the US meanwhile, the company's shipments dropped by 11 per cent in the second quarter, dragging down its market share by 2 per cent, according to IDC

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