What Lenovo’s intelligent transformation strategy means for Synnex

What Lenovo’s intelligent transformation strategy means for Synnex

Lenovo has aligned its focus in distribution across commercial and consumer segments, for the PC business

Credit: Lenovo

Synnex will no longer play a role as a distributor for Lenovo’s commercial business in the Australian market, as the vendor works to accelerate its intelligent transformation strategy. 

Lenovo A/NZ Intelligent Devices Group (IDG) has updated its distribution strategy for both consumer and commercial businesses across Australia and New Zealand, in line with the vendor’s intelligent transformation strategy and a deeper focus on emerging categories.

Essentially, the vendor is focusing on accelerating its strategy and continuing to grow its core PC business while accelerating new businesses including SmartHome, SmartOffice, Commercial IoT and Smart Verticals -- education, health and retail.

As such, Lenovo has accordingly aligned its focus in distribution across commercial and consumer segments, for the PC business.

What this means for the hardware vendor’s local distribution arrangements is that Dicker Data and Ingram Micro will continue serving the company’s commercial business in Australia, leaving Synnex out of the commercial business mix. Previously, Synnex also handled Lenovo’s commercial business in Australia, along with Dicker Data and Ingram.

However, it seems as though all three distributors will continue to handle distribution for Lenovo’s commercial business in New Zealand. 

According to Lenovo, these distributors will reinforce its go-to enterprise strategy across key vertical segments.

In the consumer segment, meanwhile, Synnex will continue to distribute all Lenovo consumer brands including Lenovo’s SmartHome range of products. Indeed, Synnex retains its distribution of Lenovo’s consumer products across Australia and New Zealand.

“As Lenovo continues its commitment to accelerate our intelligent transformation strategy in the coming year, we are streamlining our distributor network to align more closely with our priorities,” Lenovo A/NZ managing director Matt Codrington said.

“This means a deeper focus on our core businesses across both commercial and consumer portfolios as well as more specialised capabilities for emerging businesses like SmartHome, SmartOffice, Commercial IoT and Smart Vertical segments."

“We are pleased to be embarking on a new chapter of our journey with the appointed distributors, and look forward to working closely with them on the exciting opportunities that lie ahead,” he added.

It should be noted that Lenovo IDG encompasses the PC and smart devices business, including PCs, tablets, augmented and virtual reality (AR/VR), smart devices, software and services, and the mobile business for smartphones.

In November last year, Lenovo Australia and New Zealand revealed it had seen its profits for the financial year ending March 2019 sink despite an upswell of revenue.

For the year ended March 2019, the Chinese vendor saw its net profit after tax (NPAT) sink by almost 75 per cent, from $12.5 million to just $3.3 million year-on-year.

The company this year also paid a tax bill of $3.3 million, having gained a relief of  $7.3 million the year previously.

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