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Redington India strikes Kindle deal

by Stuart Wilson, Wednesday 13 March 2013

Distributor Redington India has added Amazon Kindle devices to its in-country product portfolio. The deal agreed with Amazon Seller Services – an Amazon subsidiary – gives Redington an entry point into the e-reader product category and also highlights Amazon’s ambitions in the fast-growing Indian consumer market.

The latest deal continues Redington’s strategy of picking up distribution rights for popular consumer products in India. In late 2012 Redington added distribution rights for Apple’s iPhone 5 in India. Redington also represents a number of other popular consumer brands including HP, Acer, Nokia, Blackberry and Samsung. The Apple distribution agreement is expected to add some US$200m to Redington’s sales in its current fiscal year.

Ankur Agarwal, analyst at Nomura Equity Research, stated: “We expect iPhone revenues to double in fiscal year 2014 – in a year, when the full impact of the incremental product will be visible. Redington’s revenue from Apple products - excluding iPhone - has also been growing at above 50%. This growth should remain strong in fiscal year 2014.”

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