Synnex wins China iPhone distribution: reports
By Ted Chen, The China PostTAIPEI, Taiwan -- Taiwanese consumer electronics retailer Synnex (聯強) has been awarded distribution rights for Apple's iPhone handsets in the China market, according to reports.
September 4, 2013, 2:20 am TWN
In addition to China's main telecom carriers, Apple has elected Synnex to bolster distribution efforts in the mainland market, according to reports.
With more than 17,000 retail locations established throughout China, Synnex boasts 100-percent coverage in China's first- and second-tier cities. Previously, the firm's extensive retail channels had assisted Nokia in becoming the leading handset brand in China, while serving as the Finnish mutinational's sole distributor.
According to market research institute Canalys, China's smartphone market is led by Samsung, which has an 18-percent market share, followed by Lenovo, with a 12-percent slice, while Apple resides in fifth, with a market share of 5 percent. Industry analysts expect Apple's sales to improve with the help of Synnex's extensive market coverage.
In addition to Apple's distribution deal, institutional investors are expecting Synnex's performance to continue improving in the second half of the year, citing the upcoming launching of several high-profile products by Asus, notably its MeMo and Nexus 7 tablet computers, and similar offerings by Acer and Lenovo. Sales of Lenovo, Samsung, and Apple products through Synnex's outlets in both Taiwan and China have grown 250 percent in the first half of 2013, with the momentum expected to carry through to 2014, said institutional analysts.
Apart from selling big-name devices, Synnex is poised to cross over to the mobile device modules markets, including display panels, driver integrated circuits, processors and memory. Analysts remarked that the low profit margins of the modules market are offset by its relatively low operating expenses.
Revenues derived from the sales of consumer electronic products, including servers, network equipment, and software, rose by 36 percent in the first half of 2013, amid the company's rapid expansions into China's second- and third-tier cities.
KGI Securities analysts expect the company's third-quarter revenues to grow by 8 percent, and reach NT$85.476 billion.