eSys patches up portfolio with Samsung deal

Components distributor eSys has softened the blow of last week’s dramatic fall-out with Seagate by signing a worldwide disk drive agreement with Samsung.

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By  Andrew Seymour Published  November 13, 2006

Components distributor eSys has softened the blow of last week’s dramatic fall-out with Seagate by signing a worldwide disk drive agreement with Samsung. eSys had been carrying Samsung’s products in some markets already, but will now offer the vendor’s entire range of hard disk drives across North America, the majority of Latin America and all of EMEA. The deal does not include six countries in Europe, although eSys claims that negotiations for all excluded zones — including Asia — are being thrashed out at local subsidiary level. Details will be announced in due course. “This global distribution agreement with Samsung reinforces the market credibility that eSys Technologies has come to command in key markets worldwide," said COO Neeraj Chauhan. “We will fully utilise our expertise, vast network and market knowledge to help Samsung increase its footprint in the HDD segment around the world.” He added: “We are glad to be associated with a leading brand such as Samsung whose hard disk drives are fast gaining ground globally thanks to its excellent performance and read speed. We look forward to working with Samsung and helping them achieve their business objectives in the most efficient way.” eSys’ partnership with Samsung is the first move it has made to restore some balance to its product portfolio after a distribution agreement with Seagate was cancelled last week. eSys was Seagate’s largest global distribution partner — sourcing more than US$460m worth of hard drives a year — but it’s failure to comply with a sales audit saw the contract terminated. eSys maintains that it resisted the audit due to Seagate’s 'intrusive' requests. eSys still remains a leading global distributor for several major IT component manufacturers such as Intel, Sony, Pioneer, BenQ, Hynix and Kingston, and new signing Samsung is clearly hoping to benefit from its expertise. T J Lee, VP sales and marketing, HDD business at Samsung Electronics, said: “eSys being a global electronics distribution powerhouse was the right partner for Samsung to team up with. They have a proven track record of working with several leading brands which have won them many accolades. eSys has an excellent distribution network and a team of highly efficient and capable personnel that will help boost the sales of our hard drives in key regional and international markets. Samsung’s relentless commitment to constantly improve its hard drives has seen us steadily increase our market share, and with this partnership with eSys we hope to make a greater impact,” he concluded.

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