Per a recent agreement, Ingram Micro (IM) will distribute protective solutions for mobiles and tablets from OtterBox and LifeProof.
OtterBox and LifeProof provide protective gear for all smartphones and tablets available in the market. These protective cases are designed to guard the mobile devices from external elements such as water, dirt, snow as well as sudden shock.
Leveraging Ingram Micro’s distribution channels, both the companies will be able to market their products easily and expand in newer markets as well. Ingram Micro has been teaming with emerging brands in the mobility space to expand its product and service offerings.
The company continues to invest to improve its mobility capabilities in all its operating markets, especially in Canada. It is worth noting that strong performance of its mobility business helped Ingram Micro’s first-quarter revenues to improve on a year-over-year basis.
Ingram Micro has been striking distribution deals with a number of original equipment manufacturers, thus expanding its product portfolio. Moreover, the company’s exposure in cloud computing products is expected to drive growth.
We believe that an improving IT spending trend will help Ingram to post better results, going forward. Moreover, the company’s focus on the high-margin market and strategic acquisitions to increase market share are encouraging. The BrightPoint acquisition is also expected to remain a key growth driver for the company.
Though Ingram Micro’s significant European exposure and a high debt burden are concerns, we remain fairly optimistic about the company’s strategic relationships with network giants such as Juniper Networks Inc. (JNPR), Cisco (CSCO) and International Business Machines Corp. (IBM).
Currently, Ingram Micro has a Zacks Rank #3 (Hold).
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