Electronics distributors don't see more demand yet
* Technology distributors see no green shoots outside China
* Ingram CEO says IT industry in middle of worst stages
* Falling prices could benefit distributors
By Georgina Prodhan and Paul Sandle
LONDON, June 9 (Reuters) - Electronics distributors are not yet seeing any improvement in demand for the roughly $350 billion worth of computers and components they channel to buyers worldwide every year except in China and a few niche areas.
At a conference in London, some of the world's biggest distribution companies said the supply chain for electronic goods was moving again after practically grinding to a halt, but it was too early to speak of any broad-based recovery.
"For people to start throwing out green-shoot messages, as a lot of people were doing two, three months ago, they are eating crow at this stage," Greg Spierkel, chief executive of the world's biggest distributor Ingram Micro (IM.N), told Reuters.
European distributors, such as Italy's Esprinet (PRT.MI), were even less optimistic. "So far, we don't see any major sign or any minor sign of improvement," CEO Alessandro Cattani told the meeting of the Global Technology Distribution Council.
Distributors are used by large technology vendors such as HP (HPQ.N), Dell (DELL.O) or IBM (IBM.N) to reach thousands of mainly smaller customers such as small firms and retailers, giving them insight over a broad customer base.
Roy Vallee, CEO of U.S. components distributor Avnet (AVT.N), described himself as a "card-carrying optimist" at the Tuesday conference, but said he saw no evidence of increased demand outside China.
"Outside of China's indigenous demand, which is being driven by their stimulus package, where else is demand actually up?"
"It's certainly not here (Europe), not the U.S, not Japan, so what we have is not restocking. It is a supply chain ordering again but ordering at a lower level than six months ago," he told Reuters.
Ingram's Spierkel agreed there was no evidence yet that IT demand was on the road to recovery.
"We are in the middle of the worst stages in the market for IT. In the coming months, if we haven't hit bottom we should be," he said. "But there's no way of knowing we've hit the absolute bottom."
Shipments of personal computers are expected to fall a record 12 percent this year, and cellphone sales are seen declining by 4 percent, according to research firm Gartner.
Some distributors said they could benefit from negative industry trends, such as falling average selling prices (ASPs) for electronic goods, which large suppliers would not consider worth their while selling directly.
"With ASPs going down, vendors don't want to put shoe leather on the street to move a $200 article," Spierkel said.
The next catalyst could be the approaching back-to-school season in late August and early September in the United States and most of Europe, which normally brings a spike in demand for computers and related products.
Esprinet's Cattani was not hopeful. "That the market may change is more wishful thinking than reality based on facts," he said. "Anyhow, let's hope for a good Christmas." (Editing by Rupert Winchester)












