Hitachi to focus on network PCs

In a significant strategic shift, Hitachi announced it is changing its

personal computer strategy to focus mainly on inexpensive Windows and

Linux-based network computers. The machines will enter the Japanese market this

summer and will be introduced in the United States and elsewhere later in the

fall.

The stripped-down terminals are designed to connect to the Internet. They

will cost between $500 and $1,500. Hitachi believes there is a strong market

potential developing for machines that depend on the Internet and server-based

local area networks for computer functions such as file storage and application

access. Lacking disk drives and other infrastructure of traditional PCs, network

computers are smaller, less expensive and easier to maintain.