Despite intensifying economic pressures and a cooling consumer market, SET-listed IT distributor Synnex (Thailand) is holding firm to its 10% growth target this year, aiming to reach 53 billion baht in annual revenue in a strategic pivot towards high-value technology, artificial intelligence (AI) infrastructure, and renewable energy solutions.
"While sales volumes have decreased, the sharp rise in prices, particularly in high-end and AI-related products, helps sustain overall revenue," said chief executive Sutida Mongkolsuthree.
The most significant hurdles facing the business are severe product shortages and rapidly rising prices, she said.
"For the rest of this year, prices are not going down; they will only go up," Ms Sutida said.
"We have two main concerns: product shortages in certain groups, and the skyrocketing prices of high-end components."
The most acute shortages are concentrated in high-performance components such as central processing units, graphics processing units, high-specification PCs and flash memory, driven by insatiable global demand from hyperscale and enterprise AI deployments.
This surge has tightened supply and limited local availability.
To reflect these rising costs, prices are were hiked by 10-30% across all categories, with the steepest gains for AI-linked and high-end hardware segments.
In addition, while current freight costs are protected by existing contracts, Synnex anticipates contract renewals will inevitably lead to higher transport costs, which will be passed directly in final product prices.
To combat component shortages, the company is utilising a mix and match strategy, shifting its portfolio to offer alternative brands and balancing high-specification expensive PCs with affordable notebook options to capture different market segments.
SALES PIVOT
Synnex also pivoted to selling sustainable and cost-saving technologies. Solar products are recording massive growth as both consumers and corporations look to reduce high electricity costs and save on taxes.
Digital and energy-saving solutions, such as automated smart air conditioner systems, is another growth area. These appeal to businesses that are being forced to tighten their belts and cut operational budgets, she said.
The company is also registering increased growth in cloud services, as customers increasingly prefer subscription-based models to heavy, one-time fixed investments.
Other resilient product categories include mobile phones, wearables, and commercial IT project solutions.
Despite rising costs, some organisations continue to invest in targeted AI projects to enhance productivity and maintain competitiveness, said Ms Sutida.
Other projects are being forced to absorb penalties, opting for drop-off over delivery as price changes since the order date have led to significant losses.
As higher freight costs are expected when contracts expire, Synnex is exploring alternative logistics options such as electric vehicles to mitigate these expenses.
The company is factoring in high fuel costs and commuting challenges, anticipating a potential return to work-from-home policies as it aligns its products to these potential lifestyle shifts, she said.
EARNINGS OUTLOOK
According to Kasikorn Securities, Synnex's first-quarter earnings for 2026 are expected to maintain strong year-on-year growth.
This momentum is bolstered by sustained demand for smartphones and Apple products through the first half of the year.
Key drivers include the launch of the Samsung S26 Ultra, the competitive entry-level pricing of the MacBook Neo, which is expected to stimulate Apple sales, and the debut of the Huawei Enjoy 90 smartphone series.
