Toshiba has finally and formally said goodbye to the laptop market. Its stake in the business is being sold to Sharp. It came just two years after the company sold most of its shares to Sharp in 2018. After the transfer has closed, Sharp changed Toshiba’s entity to Dynabook in 2019.
But the deal allowed Toshiba to retain a more than 19% stake in Dynabook. However, the latest development showed that the remaining share has been completely sold to Sharp. It’s Toshiba’s way of formally exiting from the laptop business and leaving its business to the Osaka-based company.
The company used to be a major player in the laptop industry. It started its way in 1985. It once ruled the market. But other major brands, like Dell, Asus, Lenovo, and Apple entered the scene.
Its Satellite laptops were used to be high in demand as they were made for heavy use. It started to outsource its production until 2015. But it began manufacturing new models in China.
The Toshiba brand was also the only brand of laptop that you would look at. But that was before.
Its competitors introduced innovative products by manufacturing light yet powerful laptops. Because their laptops were lightweight, they could easily bring them to various places. The users wanted them. The growth of HP, Dell, and Lenovo was too much to bear for Toshiba.
Toshiba failed to produce such lightweight laptops and meet the demands of its end users. It did manufacture the Portege line. At that time, consumers considered it as a sexy, thin laptop. It was a sensible choice. However, it couldn’t compete with the sexy, light, and thin laptops of Asus, Dell, and Apple.
As a result, Toshiba became a less preferred laptop brand. With a significant reduction in sales, the company sold its laptop business to Sharp for $36 million.
No Guarantee in the Computing World
The exit of Toshiba from the laptop industry is a strong indication that no matter how mighty you are in the business, it’s still not a guarantee of eternal life.
The company struggled with various self-inflicted problems. One of the great issues it faced was to enter into the nuclear-power plant industry.
But the company couldn’t help themselves from falling. It just couldn’t keep up with the innovations in the industry. It destroyed a company with an amazing legacy.
It is a big lesson for each tech company. Dell, for instance, is one of the leading manufacturers of laptops. Its business seems tough. But if it couldn’t keep up with its users’ demand, it, too, will fall, just like Toshiba.
A laptop business is a competitive space. It involves a lot of huge players that offer different features. Just because Toshiba exited, it doesn’t mean that Sharp won’t be showcasing its own laptop models. At CES 2020, it presented some of its new laptop models.
For loyal Toshiba users, they may feel weird not seeing their laptop brand when they shop for a new model. But the Dynabook could be their best bet. Sharp is said to release new models.