IT channel thrives while PC sales struggle

by Scott Bicheno on 12 August 2010, 14:01

Tags: Acer (TPE:2353), Target Components, Cisco (NASDAQ:CSCO), Avnet (NYSE:AVT)

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So what's going on? We spoke to the MD of Target Components - Paul Cubbage - and asked him how he'd managed to perform so well in such a difficult economic environment. The secret is just good, old-fashioned customer service, it seems, with Target getting a lot of business from customers unhappy with their previous disties and from word of mouth.

A large proportion of Target's business is with the independent sector and, having refocused on service and repair years ago, indies are finding plenty of business as replacement cycles are extended. By continuing to invest in servicing these customers while many of its competitors have cut back, Target is doing better than ever.

Avnet CEO Roy Vallee was asked by Tech Trader Daily why he thinks his company is doing so well while the PC sector appears to be struggling. Noting that Avnet doesn't have huge PC exposure, Vallee noted that business spend on IT is on the up, having been depressed for some time. Furthermore, he thinks it could be a multi-year phenomenon.

Ultimately, it looks like the baton is finally being handed over from consumers to businesses in IT spend, and about time too.

Lastly, back to broader macroeconomic matters, here's an article to read if you ever worry you're getting to optimistic and cocky about the global recovery. A professor of economics at Boston University has declared the US bankrupt. Oh dear.

 



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