I'd noted sometime back that once their backlog clears, they will find things slowing down.
They are stuffed with inventory from laptop manufacturers who rely upon the Distributor buying stock so they can report market share results. The Win 11 cycle isn't driving a mad dash refresh that was touted by the laptop manufacturers.
Enterprise spending is absolutely slowing on infrastructure.
Oct was a really tough month for sales across the board in the channel.
The hope being that Black Fri / Cyber Monday and Christmas have a retail pull-through as a saving grace.
DD, Synnex, Westcon, Ingram Micro are all in for a rough ride and need to clear inventory.
Great for the consumer with downward price pressure. Bad for the Distributor with compressed (low) margins. Often then Distributor is purely relying upon their buy-in rebate from the vendor and even then that is being used to discount the product further to unlock working capital and free up space (inventory costs more than just working capital e.g Insurance and obsolescence are real).
Consumers and businesses are buying less stuff.
DDR Price at posting:
$8.63 Sentiment: None Disclosure: Not Held
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