By Stuart Wilson
HP is poised to confirm Redington as the third distributor for PCs assembled at its facility in Saudi Arabia. The official contract, expected to be finalised by the end of 2004, will give Redington distribution rights outside of the Saudi market.
HP is poised to confirm Redington as its third distributor for PCs assembled at its facility in Saudi Arabia, according to sources close to the deal. The official contract, expected to be finalised by the end of 2004, will give Redington distribution rights outside of the Kingdom. At present, only Jeraisy and Nahil Computers hold distribution rights allowing them to sell the locally assembled PCs in Saudi Arabia itself.
Redington plans to target the ‘Made in Saudi’ PCs at large public sector tenders across the GCC. Because the HP units are assembled locally, they will be exempt from 5% duty making them highly competitive in terms of price. Target geographies include Qatar, Jordan and Oman. HP will be hoping that Redington, working through its corporate reseller channel, will be able to grab market share from major rivals that have staked a claim to many of the large tenders up for grabs across the region.
“We have yet to really make a breakthrough filtering these products into our run rate business for the small and medium business sector. We will appoint one or two more partners outside of Saudi Arabia to boost the distribution capabilities of this production plant,” said Christoph Schell, general manager at HP PSG, speaking late last month. HP expects its Saudi assembly plant to reach its full capacity of 250,000 units per annum within two years.