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Micron To Sell Its PC Division

Nampa, Idaho-In a surprise turn of events, Micron Electronics signed a letter of intent late last month to sell off its MicronPC division to an as yet unnamed buyer just days after expanding its nascent retail presence by adding Nebraska Furniture Mart (NFM).

The retailer expects business to continue as usual. NFM’s PC buyer Tom Peal said Micron’s decision to sell off the PC division has had no immediate effect, but he is moving cautiously in his dealings with the vendor by keeping a low inventory level. However, Micron is still holding up its end of the bargain and supplying all the support expected, including advertising funding.

“They are telling me that they are going ahead with everything as planned,” Peal said, adding that he hopes the firm buying the PC division continues to support the new retail initiatives. “They have an outstanding product with the lowest return rates of any PC we sell.”

Best Buy, the only other brick & mortar chain selling Micron, reported it is still offering Micron PCs through our in-store Computer Creation Stations.

A Micron Electronics spokeswoman said the company will honor its retail commitments, but she could not say what the company would do in the future. The PC division’s potential buyer is being named only as a “large private technology equity investment firm,” said MicronPC president Mike Atkins. Those who bought computers directly from Micron will receive support for the products through the new company, he added.

The PC division’s buyer will not be named for at least several weeks. What remains of Micron Electronics, a Web hosting business called HostPro, will merge with Interland, a developer of business-class Web hosting solutions. The newly formed company will operate under the Interland name.

NFM is offering Micron PCs through a kiosk where shoppers can custom-configure a PC, and the store is stocking three desktop PCs and one notebook computer SKU from Micron’s VelocityNet line, said Peal.