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Synnex and Logitech call it quits

Distributor and peripherals vendor announce they will part company in Australia, effective immediately

Synnex and peripherals vendor, Logitech, have called it quits after nearly a decade in business together.

In an exclusive interview with ARN, Synnex CEO, Kee Ong, said the decision to part company was mutual and effective immediately. The pair have been working together since 2001.

The general costs of doing business with Logitech were too high, thus making it difficult to justify a future partnership, Ong said. Both companies have also been revising their channel/vendor portfolios over the past 12 months.

“In the last 12 months, we have brought a lot of vendors into our range and we had to look at our other partnerships as a result,” he said. “Sometimes you have to walk away from some business and make tough decisions.”

Ong was adamant the loss of Logitech wouldn’t significantly impact Synnex’s revenue and profits, or leave a gap in its peripherals line-up. The distributor will continue providing after-sales support including warranty and returns for as long as its reseller need it, he added.

Logitech’s remaining two master distributors are Ingram Micro and Scholastic. It also maintains sub-distribution and niche specialist agreements in different market segments. In a statement, Logitech director, George Saad, expressed gratitude to Synnex for its services, but said both parties had agreed it was now time to part ways.

Synnex is not the first distributor to split from Logitech in the last year. Last November, Logitech announced it was parting company with Bluechip Infotech and brought on specialist player, Avico Electronics, to better penetrate the AV market. It followed a decision to drop Anyware and introduce a new sub-distribution tier as part of a channel restructure last July.

Nominations for the 2012 ARN IT Industry Awards open on Tuesday, June 12.

More about: ARN, Avico, Bluechip, Bluechip Infotech, Infotech, Ingram Micro, Ingram Micro Australia , Logitech, Scholastic Software, Synnex, Synnex Australia
References show all

Comments

1

luke

Tue 27/04/2010 - 18:28

logitech keep going the way they are they wont have any disties left by the look of it.

2

Rob

Wed 28/04/2010 - 09:43

looks like Logitech is better of to deal direct with resellers.

3

Charles

Wed 28/04/2010 - 13:48

Logitech have been pushing resellers to Ingram for the past 3 months. This would be great if Ingram were market competitive, for instance you can buy the same thing from resellers for almost 50% less.

eg G19 Keyboard $200 online (pn 920-000984) $325 from Ingram
CLEARCHAT PRO HEADSET 981-000011 $59inc from Ingram $40 online.
OUTDOOR SECURITY CAMERA 961-000295 $387inc from Ingram $129 on the net.

All prices from getprice.com.au

When asked about it, Ingram don't care, as they sell large volumes to unsuspecting resellers that simply don't check, alternatively the margin in being retained by Ingram on the products.

4

dave

Wed 28/04/2010 - 15:13

there is no need for another disti, when im pm workas so closely with one fo the sydney it reseller in managing the market and at the same their profit sharing. so distribution; wholesale and retail all in one. eveyone buys at the same wholesale price. great idea!!!

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Tags: Anyware, Avico Electronics, bluechip infotech, Ingram Micro, Kee Ong, logitech, scholastic, Synnex
ARN Directory | Distributors relevant to this article
ASI Solutions , Bluechip Infotech , Impact Systems Technology , Leader Computers , Mittoni , Scholastic , Synnex Australia , Topstar Computer International , XiT Distribution , Xpress I.T.
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