DISTRIBUTION of Samsung monitors and printers changes hands today, moving from Radiola to Ingram Micro.
According to Mark Livingstone, Radiola general manager, it was a joint decision to discontinue supply based on extremely tight margins.
“It wasn’t a case of Samsung marching in and telling us what to do. Now Radiola can focus on the strong area of consumer electronics (CE), which is really our heartland,” he says.
According to international market research firm Isuppli, the LCD monitor market is about to enter a glut period after manufacturers overestimated demand.
Mujin Kang, IDC associate PC and monitor analyst, says there has been huge growth in the number of LCD monitor shipments this year, matched with a fast decline in CRT screens.
“Demand for bigger-size LCD is growing as manufacturers are pushing premium products at the high end, though it is becoming a commodity product,” he says.
Kang says that companies that don’t have a business model for dealing with commoditised products need to move out of the space and hand over to distributors with an established supply chain dealing with small margins. “At the moment there isn’t a glut in New Zealand because the market is still being driven by demand but it’s a big, red flag if it’s happening overseas.”
Livingstone says losing the two products won’t have a major impact on Radiola but will affect Samsung distributors Datastor and Westan.
“They’ll have to consider what they’ll do in the future. The assumption is that Ingram will have Samsung exclusively so they will have to go knocking on Ingram’s door.”
Dave Rosenberg, Datastor sales manager, agrees that it will have an impact but says that Samsung doesn’t represent a huge part of the company’s business.
“It’s too early to say what’s going to happen at this stage but from our perspective Philips is our predominant focus,” he says.