Tech Distributors Look Forward to Late 2009 Bounce
SAN FRANCISCO (Reuters) – Electronics distributors from Ingram Micro to Avnet could report disappointing quarterly results as pricing pressure intensified, but analysts were cautiously hopeful that profits would rebound by year’s end as corporate spending returns.
Avnet, Arrow Electronics Inc and Ingram Micro — which help the likes of IBM and Hewlett-Packard sell products worldwide — have struggled with economic uncertainty in Europe, price pressures in North America and a mixed picture in Asia. (…)
IT Distributors Hope Sales Have Hit Bottom in U.S.
The IT sales channel, through which the majority of server, storage, and software products actually travel from factories to end user customers, is hoping that the worst of the economic meltdown is over.
Just prior to a meeting of members held last week in London and just after a meeting held in New York in mid-May, the Global Technology Distribution Council, called the bottom of the market, at least in the United States. The GTDC is an industry association representing some of the biggest names in IT distribution–Arrow Electronics, Avnet, Bell Micro, Ingram Micro, Magirus, Synnex, Tech Data, and others–with combined global sales of over $100 billion. “The recession that has hurt industries across the world is still a challenging reality,” explained Tim Curran, the GTDC’s chief executive officer, in a statement. “But it appears that the downturn has leveled off in the U.S. market for IT distributors. “Our members are encouraged and look forward to driving growth again as market conditions further improve.”
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