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Toshiba delivers stronger H1 as it looks for further recovery

Brexit and weak PC demand might have made its plans to expand into the corporate laptop arena more challenging but there are some positive signs coming from Toshiba

Anyone who is trying to go for growth in the PC market is brave given the prevailing winds of decline in that space and maybe deserves to be given time to turn things around.

Earlier this summer Toshiba revealed that it believed there was still life in the business PC market and as a result it was working with channel partners to go after that opportunity.

The size of the challenge was fairly large even before it began, with the PC market struggling to produce growth over the past few years, and despite Q3 witnessing a revival of sorts the UK has also been hit by Brexit and hardware price rises.

The scale of the ambition to gain PC market share was made even clearer with Toshiba's 1H for the six months to September. "The shrinking scale of the PC and TV businesses had an impact," the firm revealed.

In notes accompanying the numbers, which saw a 4% decline in revenues for the first half, the firm highlighted Brexit as one of the main issues that had impacted performance. Overall the Eurozone delivered moderate growth, driven by Germany, but demand also slowed in China.

Where things are motoring is on the hard drive front, which helped operating profits increase three fold on the same time last year to 115.3bn Yen, thanks largely to NAND flash memory chips that go into smart phones.

The firm is trying hard to recover from an accounting scandal that saw it restructure and drop into the red and the latest numbers give it a platform for growth. The firm has also revised its annual outlook upwards to the tune of 50% to bring home a profit in the region of 180bn yen, compared to the 708.74bn loss last year.

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