Redington expects to continue benefiting from Apple distribution

The share prices plunged in the morning, recovering a little bit after company's clarification on exchanges

Redington (India) Ltd has today said that the new distribution initiative by Apple to expand and grow the business would benefit Redington, helping it to continue its position in the market in the future.

The company's share prices took a hit of 6.58% to Rs 123.45 per share on Wednesday, as report stating electronics major Apple is planning to bring in a distributor into India.

Redington, in its clarification issued to the exchanges said that as part of aggressive plan of Apple to significantly grow the iPhone business, Apple is relooking at its distribution landscape and redefining its customer segments and realign the geographies being addressed.

"We strongly believe that all the new initiatives by Apple to expand and grow the business will significantly benefit Redington resulting in Redington continuing at the leadership position in future as well," said the company. Apple's key resellers are Redington, Ingram Micro, Rashi Peripherals and Reliance.

Redignton has been reporting growth in the market mainly driven by the Apple sales, which accounts to majority of its revenue.

The share price of Redington experienced a fall from Rs 132 per share in the morning to around Rs 108 per share before 11 am, which gradually picked up after the company's clarification, according to Bombay Stock Exchange data.