Dell Ends Distribution Relationship with Arrow Electronics, Potential Revenue Over $1.4B
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 2 days ago
0mins
Dell Technologies (DELL) is ending its decade-long distribution relationship with Arrow Electronics's (ARW) ECS unit following a formal review and RFP process for its North American distribution business, creating a potential $1.4B+ revenue opportunity for competing distributors and forcing some channel partners to transition to new distribution providers, CRN's Joseph F. Kovar reports. Sources cited several reasons for Dell ending the relationship, including Arrow's narrower focus on enterprise and midmarket customers rather than carrying Dell's full portfolio, especially client devices and SMB offerings, along with more limited inventory and warehouse capabilities, while the departure of former Arrow ECS CEO Sean Kerins may also have weakened strategic alignment.
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Analyst Views on DELL
Wall Street analysts forecast DELL stock price to fall
15 Analyst Rating
11 Buy
3 Hold
1 Sell
Moderate Buy
Current: 409.450
Low
113.00
Averages
164.85
High
180.00
Current: 409.450
Low
113.00
Averages
164.85
High
180.00
About DELL
Dell Technologies Inc. is engaged in designing, developing, manufacturing, marketing, selling, and supporting a wide range of comprehensive and integrated solutions, products, and services. The Company operates through two segments: Infrastructure Solutions Group (ISG) and Client Solutions Group (CSG). Its ISG segment enables the Company’s customer’s digital transformation with solutions that address artificial intelligence (AI), machine learning, data analytics, and multi cloud environments. Its comprehensive storage portfolio includes modern and traditional storage solutions, including all-flash arrays, scale-out file, object platforms, hyper-converged infrastructure, and software-defined storage. Its CSG segment offers branded personal computers (PCs) including notebooks, desktops, and workstations and branded peripherals that include displays, docking stations, keyboards, mice, and webcam and audio devices, as well as third-party software and peripherals.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
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