Ingram Micro 2010 Annual Report Download - page 14

management services. These agreements generally may be terminated by either party without cause following
reasonable notice. The service offerings we provide to our customers are discussed further below under “Services.”
Our business is not substantially dependent on any of these distribution or supply chain services contracts. No single
customer accounts for more than 10% of our total revenue.
Sales and Marketing
We employ sales representatives worldwide who assist resellers with product and solution specifications,
system configuration, new product/service introductions, pricing, and availability.
Our product management and marketing groups help create demand for our suppliers’ products and services,
enable the launch of new products, and facilitate customer contact. Our marketing programs are tailored to meet
specific supplier and reseller customer needs. These needs are met through a wide offering of services by our in-
house marketing organizations, including advertising, direct mail campaigns, market research, on-line marketing,
retail programs, sales promotions, training, solutions marketing, and assistance with trade shows and other events.
We also create and utilize specialized channel marketing communities to deliver focused resources and business
building support to solution providers.
Products
We distribute and market hundreds of thousands of technology products worldwide from the industry’s
premier computer hardware suppliers, networking equipment suppliers, software publishers, and other suppliers of
computer peripherals, CE, AIDC/POS, physical security and mobility hardware worldwide. Product assortments
vary by market, and the suppliers’ relative contribution to our sales also varies from country to country. Although
our revenue mix by product category on a worldwide basis has remained relatively stable over the past several years,
we have seen a slight shift in favor of systems over peripherals more recently, as the economic recovery has
encouraged a system refresh and personal mobile devices have experienced strong growth rates. Our revenue mix by
product category may fluctuate between and within different operating regions. Over the past several years, our
product category revenues on a consolidated basis have generally been within the following ranges:
•IT Peripherals: ....................................................... 35-40%
•Systems: ............................................................ 30-35%
•Software: ............................................................ 15-20%
•Networking: .......................................................... 10-15%
IT Peripherals. We offer a variety of products within the peripherals category that fall within several
sub-categories:
• traditional IT peripherals such as printers, scanners, displays, projectors, monitors, panels, mass storage, and
tape;
• digital signage products such as large format LCD and plasma displays, enclosures, mounts, media players,
content software, content creation, content hosting, and installation services;
• CE products such as cell phones, digital cameras, digital video disc players, game consoles, televisions,
audio, media management and home control;
• AIDC/POS products such as barcode/card printers, AIDC scanners, AIDC software, and wireless infra-
structure products;
• physical security products such as IP video surveillance, security alarm systems, fire alarm systems, access
control smart cards and printers;
• services provided by third parties and resold by Ingram Micro;
• component products such as processors, motherboards, hard drives, and memory; and
• supplies and accessories such as ink and toner supplies, paper, carrying cases, and anti-glare screens.
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