PC Wholesale quits hardware distribution business

Melbourne-based Toshiba distributor PC Wholesale has gone out of the hardware distribution business. Industry speculation indicates that Toshiba's decision in mid-December of last year to drop PC Wholesale as a distributor of its products directly led to the decision.

PC Wholesale managing director Joan Hegedus acknowledges being dropped by Toshiba was a blow, but says the company is glad to be out of hardware distribution. "The return on investment in hardware distribution is terrible. Where are the profits?" she said.

Hegedus says PC Wholesale - under the aegis of its parent company Southern Cross Computer - will redirect its area of operations in 1997, but declined to provide more detail. "We're looking at three main areas, but haven't made any decisions," she said.

Currently, Toshiba has two national distributors: Tech Pacific and Prion, with CHA in Victoria, Dicker Data in New South Wales, PDS in Queensland, BMS in South Australia and MicroSL in Western Australia.