CCD to pull out of PC and print distribution


CCD to pull out of PC and print distribution

Simon Quicke

CCD has announced plans to pull out of PC and print distribution to focus on storage, servers, software and services.

In a growing sign that low margin business is no longer attractive CCD wrote to customers pointing out that the PC and print markets were commoditised.

"There are many reasons for this change but key among them is the extreme commodity nature of the volume PC and Print segments that has made differentiation virtually impossible," stated the strategy update sent by CCD business unit director Mike Rodwell.

"At the same time, the costs associated with logistics and supply chain have increased to a point where the volume economics in these segments have become untenable," he added.

The withdrawal from the print and PC markets is going to be a "gradual process" and the distributor informed customers that the decision fitted into the overall strategy.

"CCD's decision to concentrate on more value-based distribution is consistent with the direction the company has successfully pursued during the past few years and with the requirements of the value-added reseller base that it serves."

One source in distribution said that the market was becoming increasingly difficult because of the recession and this was an understandable move because the margins that could be made on some hardware products had become wafer thin.

CCD was unavailable for further comment.

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