Ingram Displays V7

The Santa Ana, Calif.-based distributor showcased its new V7 17-inch and 19-inch LCD displays at CMP's TechBuilder XChange event last week in Las Vegas.

"They sell good quality components," said Steve Plotz, president of Computer Systems of Tampa, a Tampa, Fla.-based system builder. "I'm sure whoever they are buying them from is providing quality. I'm not sure they are going to be able to compete on price."

Ingram Micro has sold the V7 displays to retail customers in Europe for four years and expects to further leverage its position as a global distributor to sell the displays in North America, said Greg Spierkel, president of Ingram Micro.

"Manufacturers making products for Hewlett-Packard or Dell and other well-known manufacturers slap their own name on them," Spierkel said. "We can bring a product to market here, with a great refresh rate and resolution, for cheaper."

Ingram Micro also wants to brand other peripherals such as digital cameras, printers, cables and projectors, but it does not expect to offer notebooks, desktops or servers, Spierkel said.

"Systems tend to be extremely competitive and more sensitive to brand recognition in North America," he said. "But when you get to monitors or low-end digital cameras, those are things people say [they] can't tell the difference."

Some display manufacturers, including Ingram Micro customers, were wary that the distributor could compete against them.

"This market is already so tight, so competitive. To be honest, if they say they have a lower price, I don't believe it," said Danielle Feith, senior director of marketing at SVA Group, Commerce, Calif. "I know the cost of the panels, we produce panels, and I know we don't make a lot on them. I don't know if it's a smart move for them. If they can do it, more power to them."

T.J. Trojan, president of NEC Display Solutions of America, Itasca, Ill., was surprised that Ingram Micro would even want to enter an already-crowded market.

"It's a tough market when you have a great brand. When you don't have a brand, it's even more difficult," Trojan said. "We trust they will do the right thing for their partners. The only concern is if they target our customers. Other than that, if they can provide incremental business, that's fine."

Ingram Micro does not plan to displace name-brand vendors with its customers and would seek incremental business, Spierkel said.

The V7 business represents about $140 million in revenue for Ingram Micro in Europe, but worldwide revenue could grow three to four times that over the next four years, he said.

Susan Labandibar, president of Boston-based Computer Warehouse, said there are only two advantages to branding a product. One is competitive pricing, but Ingram Micro has yet to discuss price. The other is because a brand has value. "But the Ingram Micro brand has no value to my customers," she said.

Labandibar also said she sees the Ingram Micro-branded displays as the first step in a possible branded-system play similar to that of another distributor, City of Industry, Calif.-based Max Group.

"Max Group offers a paint-by-numbers solution," she said. "You can buy all Max Group products and come up with an affordable system. Maybe Ingram Micro is heading that way. Maybe that's their value-add. If Ingram Micro starts building Ingram Micro-branded components, it could be on the way to building Ingram Micro-branded solutions."

EDWARD F. MOLTZEN and JOSEPH F. KOVAR contributed to this article.