Companies in this industry primarily distribute computers, computer equipment, packaged software, and office equipment. Major US-based companies include Ingram Micro (owned by China's HNA Group), ScanSource, Tech Data, and divisions of diversified electronics distributors such as Arrow Electronics and Avnet. Major companies based outside the US include ALSO (Switzerland), Digital China, Esprinet (Italy), and Redington (India).
Demand is strongly affected by the level of business activity. The profitability of individual companies depends on merchandising and efficient operations. Large companies have economies of scale in purchasing. Smaller companies can compete effectively by offering specialty products or superior service. The US industry is concentrated: the top 50 companies account for about 70% of revenue.
Products, Operations & Technology
Major products include computers, packaged software, copiers, data storage drives, and printers. Other products include mailing and letter-handling machines and large number of peripheral computer devices and supplies, such as networking equipment, scanners, point-of-sale (POS) equipment, and ink cartridges.