Thursday, August 6

ECSB not worried by HP’s PSG spin-off plan

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KUALA LUMPUR: Main Market-listed ECS ICT Bhd (ECSB), a leading distribution hub for ICT products in Malaysia, has expressed confidence that the possible spin-off of Hewlett-Packard’s (HP) personal systems group (PSG) will not directly affect its business.

Last August, HP announced that its board of directors had authorised the evaluation of strategic alternatives for its PSG, including separating its PC business into a separate company through a spin-off or other transaction. HP’s PSG is the world’s leading manufacturer of personal computers.

ECSB managing director Foo Sen Chin said there had been no direct impact on the group’s business and HP had yet to make a decision on its PSG business.

“HP constitutes 60 per cent of our business during the period we raised the IPO last year April, but now we have brought it to less than 50 per cent as there are more additions to our brand range.

“Even if HP’s PSG is taken over, the new partner will need a distributor like us for the Malaysian market, so whether it’s HP or another company, it will not really have a direct impact on us,” he told Bernama.

ECSB is an associate company of ECS Holdings Limited, a Singapore Exchange mainboard company with a network of more than 23,000 channel partners across China, Thailand, Malaysia, Singapore, Indonesia and the Philippines.

ECSB distributes ICT products such as notebooks, desktop computers, printers and software from more than 30 leading principals like HP, IBM, Cisco, Microsoft, Apple, Dell, Oracle, Epson, Samsung and Google, with more than 2,500 resellers nationwide.

Foo said the arrival of tablet PCs in the local market last year had affected demand for notebook PCs.

“In Malaysia, response to tablet PCs has been quite good for leading brands such as Apple iPad and Samsung Galaxy Tab,” he added.

Foo said ECSB would not fret over the change in trend and demand since increased sales of other brands would eventually balance the fluctuating demand for PCs and notebooks. Demand for PCs and notebooks would not drop drastically as tablet PCs are not built and designed for serious business applications, he added. — Bernama