New Ingram Micro Unit to Handle High-Volume Sales : Computers: The creation of the subsidiary could mean the addition of at least 50 jobs at firm’s Santa Ana headquarters.
SANTA ANA — Computer distributor Ingram Micro Inc. said Wednesday it will create a subsidiary to handle high-volume computer sales.
The company said it expects the new unit to have annual revenue of $1 billion within a year and that its creation could mean the addition of at least 50 jobs at its Santa Ana headquarters.
The subsidiary, which will start in August, will be called Ingram Alliance Reseller Co. Instead of focusing on Ingram’s regular computer wholesale business, the new unit will specialize in selling computers to large retailers known as resellers, which repackage computer equipment with custom software.
David Dukes, co-chairman of Santa Ana-based Ingram Micro, said the new business will let Ingram Micro compete with so-called aggregators--large resellers such as the Intelligent Electronics computer store chain. Such retailers, which have invaded the turf of distributors, order such large volumes of computers from manufacturers that they can get wholesale prices and distribute their goods to other computer resellers.
“Ingram Alliance’s mission is to provide resellers with a one-stop source for all of their product and service needs,” said Doug Antone, a former executive at software firm Borland International who will serve as president of the new unit, which also will be based in Santa Ana.
Dukes noted that Ingram Micro’s conventional business--distributing computer equipment to a wide variety of computer sellers--is suffering from an ever-increasing squeeze on profits as PC prices fall.
Ingram Alliance will offer large volumes of name-brand computer equipment at discount prices that otherwise aren’t available in its general distribution business. It could also boost profits by charging fees for services such as configuring computers for custom settings, financing computer leases and providing technical support.