Local system builders will benefit from Ingram Micro’s appointment as AMD’s first local broad-based distributor.
This is according to Ingram boss Tony Butler, who says the deal, part of a global agreement reached between the two companies last year, rounds out Ingram Micro’s range of products for assemblers.
“To compete in an increasingly competitive market, assemblers are producing a much wider range of products and are using a wider range of components. They need distributors who keep a wider range of products,” he says.
Local assemblers have seen their market share plummet in recent years as they have not been able to compete with multinational manufacturers in the booming notebook market, says Butler.
“Local assemblers have taken some time finding their feet in the notebook market. The whitebook [locally assembled notebooks] market has not taken off in a big way in New Zealand,” he says.
However, Butler believes things will change for assemblers as the PC becomes a digital media hub through products such as Microsoft Media Centre Edition and the new version of Windows, Vista.
“New Zealanders have shown to be very good at bringing the next big thing to market faster than multinationals,” he says.
Ingram will stock AMD’s full range of desktop, notebook and server microprocessors, but shares the agency with Legend and Avnet.
Both these companies have been supplying the range from Australia, although Legend has a Wellington office.
Caleb Leung, AMD’s Sydney-based sales manager, says Avnet and Legend remain on board.
Ingram Micro is important to the company’s growth strategy and will cater for increased demand here, he says.
“We have been experiencing large market share improvements in the last few quarters,” says Leung.
Ingram Micro also distributes AMD rival Intel, but Leung says this is not a concern, as the company represents many competing brands.
Dan Anderson, PR manager for Intel in Sydney, says Ingram’s deal with AMD will not harm its relationship with the distributor.
Butler agrees: “Our relationship with Intel remains strong. We expect to increase our Intel sales.”
Meanwhile, Butler says AMD’s appointment of Ingram Micro around the world proves the company has risen to be a serious contender in the microprocessor space.
“Ingram Micro signing a worldwide contract with AMD indicates AMD is seen as an important product to have to be serious as a broad-based distributor.”