Free Newsletters for the Channel
Register for Your Free Newsletter Now
The VAR Guy is often skeptical of market studies that make bold statements about all the money technology companies lose to the high-tech underground. But our resident blogger loves statistics. And the latest stats about gray market high-tech products should be alarming to VARs.
The VAR Guy
October 10, 2008
1 Min Read
The VAR Guy is often skeptical of market studies that make bold statements about all the money technology companies lose to the high-tech underground. But our resident blogger loves statistics. And the latest stats about gray market high-tech products should be alarming to VARs.
According to The Alliance for Gray Market and Counterfeit Abatement (AGMA) and KPMG, the value of gray market products in 2007 averaged $58 billion, placing the gray market between 5% and 30% of total IT sales.
Hold on. That’s a pretty big range. Is it 5% — or is it 30%?
In the defense of AGMA and KPMG, even a 5% problem is a big problem. A spokesman for AGMA and KPMG says:
With an average impact on profits of between $8 [billion] and $10 billion, it is imperative that IT executives educate themselves about the dangers of the gray market, establish tighter management policies and effectively monitor compliance among business partners in order to minimize the flow of product into the gray market.
Big-time IT companies like Cisco Systems Inc. are talking up the threat of gray market hardware. And Hewlett-Packard is battling the gray market threats as well. Consider yourself warned. Don’t go over to the dark side.
About the Author(s)
You May Also Like
Sep 16 - Sep 19, 2024
Sep 16 - Sep 19, 2024
Join us for MSP Summit, September 16-19, 2024 in Atlanta, GA. You don't want to miss the industry’s most innovative and inspiring gathering of business leaders focused on growing their managed services businesses. This year’s MSP Summit will help attendees stay ahead of exponentially increasing security threats, expanding their range of services through a merger or acquisition and embrace a wide range of innovative new technologies. Get notified when registration opens.
Sign Up For Special Deal