NEC studies link with PC assembler in Iran

Japan's NEC is considering moving into Iran through a tie-up with a PC assembler there, according to a senior official. "Given the high import duties there, it looks the best option available to us. The potential in that market, which is currently dominated by local players, is so very high," said Michel de Bievre, executive director at the international division of NEC.

"We are looking at the options available for us, with local assembly being at the top. If the right partner comes through we are definitely interested." "Another regional market where we believe we can do more is Saudi Arabia, where we have one distributor now. More could be added. "India is another market we will look at once the Middle East operations are consolidated. For this, a distribution facility here might be taken up.

"In the near term, we will also be focussed on extending our sales of the NEC servers and notebooks (which carry a higher margin). Currently, regional sales are very much in favour of the home PCs." Recently, NEC set up its international division in France. Shipments for the Middle East are now sourced from there instead of from Malaysia as was the case earlier.

The company has an output of 3.5 million PCs annually (excluding those from Japan and China) from its plants in France, Scotland, South Africa, Malaysia and Brazil. Meanwhile, Jumbo Electronics is interested in acquiring the rights for NEC's mobile Notebooks, a senior official said.

"It will be a good addition to our IT portfolio. With a PC penetration of over 10 per cent, there is still a huge gap in what can be done in the UAE," said Ashwani Sharma, Jumbo's deputy general manager of the IT division for the Middle East and Asia.

"Even while the PC penetration is still low in the UAE, there is a market building up for replacements, particularly at the higher end of the scale as our sales during Dubai Shopping Festival are bearing out. This process will only accelerate further," said M.P. Sharma, director-commercial.