Hitachi says to withdraw from home-use PC business

TOKYO, Oct 23 (Reuters) - Hitachi Ltd (6501.T: Quote, Profile, Research, Stock Buzz) said on Tuesday that it will discontinue development and production of home-use personal computers amid stiff competition and slumping sales.

Hitachi, which has helped pioneer PC development in Japan, said it has not developed PC models for the year-end shopping season and it has no plan to develop any future models at the moment.

"We have stopped assembly of Prius brand PCs at Toyokawa factory" in Aichi Prefecture, said a Hitachi's spokesman. "We will continue maintenance services for already sold PCs."

Hitachi's domestic shipments totalled slightly more than 600,000 units in 2006, making it the eighth-ranked company with a market share of 4.6 percent, the Nikkei business daily said earlier, citing data from the MM Research Institute.