Bangkok: SYNNEX has announced that the prices of IT products and smartphones are anticipated to rise until the year's end, driven by the rapid expansion of artificial intelligence (AI) competing for supply. The company is positioning itself to harness intelligent technology to create business results in revenue, efficiency, customer experience, decision-making, and innovation. It intends to utilize its expertise in products, branding, logistics, and networking to develop solutions, services, platforms, and ecosystems, thereby unlocking new opportunities in the commercial and enterprise markets and fostering growth alongside its partners.
According to Thai News Agency, Ms. Sutida Mongkolsuthee, the Chief Executive Officer of Synnex (Thailand) Public Company Limited (SYNNEX), highlighted that the technology industry is evolving to produce more value and business results, particularly in the AI sector, which is revolutionizing work processes and business operations. SYNNEX is focused on transitioning from its distribution roots to creating added value throughout the technology chain, growing in tandem with partners within the technology ecosystem.
SYNNEX is prepared to capitalize on its partnerships with over 70 global technology entities and more than 6,000 distribution channels. The company plans to leverage its capabilities in products, logistics, and market access to link technology with partner expertise, jointly developing practical solutions tailored to the needs of the commercial and enterprise markets.
Ms. Sutida emphasized, "AI is transforming how we work, how we conduct business, and how we meet customer needs. But the value of AI comes into being when it can be used to create measurable business results. SYNNEX's role is to connect technology from global brands with the expertise of our partners to transform AI opportunities into actionable solutions in the Thai market."
Despite an improvement in supply shortages earlier this year, IT prices are expected to increase until year's end. This trend affects not only mobile phones but also memory, storage, and RAM. The surge in demand for AI products, particularly from large cloud service providers or hyperscalers competing for IT components, is the primary cause of this price increase. Manufacturers are allocating quotas to these groups, leading to tight supply and higher prices in the broader market. These elevated prices are expected to persist throughout the year.
In the high-end smartphone market, particularly among Apple enthusiasts, sales are projected to remain robust despite high prices for top-tier models, including the latest iPhones. The first year witnessed an 8% decline in Apple's sales due to a raw material shortage, which impeded production.
With Thailand's economic slowdown and consumers becoming more frugal, businesses have adapted by focusing on financing, leasing, cloud services, and subscription models. They are collaborating with partners to offer installment payment plans for phones and IT equipment, aiding customers in managing monthly expenses more effectively.
Regarding government regulations on data centers, SYNNEX perceives no negative impact yet, viewing it as an opportunity due to governmental support for continued investment. The company is focusing on easing the importation of IT products and new technologies, such as AI, data centers, solar cells, and EV chargers, which are considered new growth drivers. SYNNEX also plans to unveil new business collaborations next year.