Under the new organizational structure, NEC Computers, which will continue to provide mobile devices and other computing products, will become a subsidiary of Sacramento, Calif.-based NEC Technologies, a maker of imaging products.
The challenge for NEC Computers has been in taking on Dell Computer, IBM, Hewlett-Packard, Compaq Computer and others that quickly churn out nearly identical desktop machines and already have a strong presence in the corporate market. NEC Computers' strongest presence is in the portables market, from which it derives more than 50 percent of its revenue.
Though it becomes a division of NEC Technologies, NEC Computers will continue to play in its target markets by offering existing product lines including the NEC Versa notebook and PowerMate desktop computers, the MobilePro handheld PC and Express5800 servers.
Both companies said over the next few years they intend to develop and combine operating designs so they can jointly face the market equipped with a complete suite of computing products.