Asbis dumps Maxtor

Asbis has dumped Maxtor from its vendor line-up today. The reverberations from Maxtor’s appointment of eSys as a fifth EMEA distributor at the end of the second quarter continue to rumble on.

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By  Alex Malouf Published  September 28, 2004

Distribution outfit Asbis has dumped Maxtor from its vendor line-up as the reverberations from the hard drive vendor’s decision to appoint eSys as a fifth Europe, Middle East and Africa (EMEA) distributor at the end of the second quarter rumble on. Sergei Kostevitch, CEO at Asbis, said simply: “As of today Asbis and Maxtor have mutually agreed to terminate their contract. But we want to assure our customers, and Maxtor also, that the RMA process and warranty support will continue. Maxtor will develop their business their own way and we have enough product lines on the hard drive business to develop.” The appointment of eSys at the end of the second quarter was not well received by existing distribution partners in EMEA. They had linked the move to excess inventory concerns stemming from problems in Maxtor’s OEM relationship with Dell. With existing distributors already struggling to maintain margin on Maxtor’s high-volume low-cost drives, Asbis’ decision to drop the vendor does not come as a complete surprise. “We only do business if we see value from the business. During the last twelve months with Maxtor, we have not seen any value from the business to justify continuing. We cannot agree on pricing strategies, on channel developments and we also see issues with distribution,” Kostevitch added. Speaking after the appointment of eSys, Didier Trassaert, vice president at Maxtor EMEA, said: “Maxtor in EMEA is leading the market. But we have some countries we need to cover more — for example in Eastern Europe including Russia. It is clear that the primary reason for the addition of eSys inside the EMEA distribution network is to fix these kind of issues and allows us to reach inside these markets.” “eSys has a low cost distribution model that allows us to be very competitive on price. Maxtor now has a large product portfolio including low-cost drives moving in high volumes. eSys is a very important distributor for taking these to market in a cost-effective manner,” he added. Asbis, which distributes into emerging markets in EMEA, believes in focused distribution according to Kostevitch. “I believe it was good for us to reach this agreement,” he concluded.

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