Tech Data Corporation (TECD – Analyst Report) will be offering 3D TVs and Lenovo’s IdeaPad laptop PCs to retailers in the consumer electronics,PCGA-BP2NY, market, thereby expanding its consumer electronics product offering and diversifying its customer base.
The consumer market had been sluggish in 2009; however, we believe the increasing popularity of 3D TVs will drive a higher demand for consumer electronics,VGP-BPL5, thereby boosting Tech Data’s profitability over the long term.
Tech Data offers authorized retailers access to 40 to 60-inch 3D LCD TVs, 3D glasses and Blu-ray Disc players. Tech Data also distributes a broad array of 3D-capable projectors. According to U.S. research firm Display search, 3D TVs is expected to ship 3.4 million units in 2010 with 42.9 million projected to ship in 2014. The expanded product,VGP-BPS13, portfolio with the addition of 3D TVs will enable Tech Data to benefit from the soaring demand of 3D products.
Furthermore, Lenovo’s IdeaPad laptops will help the company take advantage of the tremendous growth in personal computers,VGP-BPS15, (PC) market. According to market research firm IDC, the PC market is expected to grow 20% in 2010 and portable PCs will remain the driver of growth across consumer and commercial segments.
Tech Data has a diversified customer base within both the North American and European operating segments. In 2009, Tech Data added more than 1,300 consumer electronics,VGP-BPS3 , retailers’ worldwide and benefited from strategic retail distribution agreements with leading electronics manufacturers.
The company’s diverse product portfolio through its Consumer Technology Group will help it to further strengthen its customer base and leverage strategic partnerships with leading hardware and software,VGP-BPX11 , vendors. This is a key growth driver for the company over the long term.
