Channel sales boost Sun bottom line
UK channel sales up 19 per cent, claims vendor
Sun has reported improved sales for its second quarter and claimed it has upped channel sales in the UK by almost 19 per cent.
The vendor posted turnover of just under $2.8bn and a loss of £125m for its second quarter ended 28 December 2003.
The figures are an improvement on the same period in 2002, when Sun reported a $2.2bn loss, although turnover was slightly higher.
"We grew our business in the UK quarter-on-quarter by 19 per cent in terms of partner sales, and that's not including the NHS deal," said Gary Nugent, Sun's mid-market sales manager.
Nugent said that in the past six months 83 per cent of Sun's UK revenues were garnered through channel sales, compared with 76 per cent previously.
Mark O'Hara, managing director of Sun reseller Hydra, said Sun sales were up. "There was lots of talk about arrogance and grey importing a while ago, and Sun appears to have straightened that out," he said.
"The biggest problem at the moment is that lots of people are selling Sun, and it's hurting hardware margins."
Nugent added that Sun wants resellers to sell more services, which would give resellers that are prepared to make the investment a step-up.
O'Hara was positive about the move. "Sun has my vote if it can restore margin in that way," he said. "Once services start to happen, people like us will be better off, and the ambulance-chasers will start to struggle."