Shannon Cross : I’ll give you up for a call on that.
Rich Hume: So three buckets here. So first, in core distribution and I’m thinking now in terms of offerings, right? We fundamentally believe that we’re going to see many offerings now AI infused. So there’s not — obviously, there will be applications out there that might sell sort of AI-as-a-Service, but we kind of see the embedded AI as being something that will lift the entire offerings portfolio, almost end-to-end and you had the piece talking about how AI might influence PC ecosystem. So as we move through time, I think offerings become more intelligent, more robust and likely we’ll have an influence on some of the ASPs as we move through time. Second, from a Hyve perspective, we all know that the hyperscalers are going to be building out a pretty big tranche over time of, I’ll call it, AI-tuned or AI-optimized servers and storage and networking and the entire sort of data center category.
So that will be an opportunity for us to compete to continue to win business within that category. And lastly, from an operations perspective and productivity. Obviously, we’ve been on a journey around machine learning and automation. And now we get a little bit supercharged with what I’ll call more advanced AI capabilities. And candidly, we’re really learning to determine where the best pursuits are for our operation in terms of using that new technology within our franchise overall. So those are the three sort of categories that we think about AI.
Shannon Cross: Great. Thank you very much.
Rich Hume: Thank you.
Operator: The next question is from Ruplu Bhattacharya with Bank of America. Your line is open.
Ruplu Bhattacharya: Hi. Thank you taking my questions. My first question is regarding the pricing environment. Are you seeing suppliers lower prices as commodity costs have come down? And are your own customers buying leaner configurations given the uncertain macro — so can you give us your thoughts on your ASPs?
Rich Hume: Yes. So Ruplu, to be clear, I’m going to address the ASPs predominantly within the PC ecosystem space. I mean, obviously, when you get into data center, following the configurations and the ebbs and flows, it makes it a bit more difficult. But actually, ASPs were up in the quarter, which might be a bit of a surprise. This is for our business, but we see ASPs actually increasing. So therefore, I think we see inflationary impacts priced in and/or richer configurations. And at the same time, the volume declines were a little bit larger to get us to sort of the average unit revenue, if you will. So ASPs are holding up. However, within that higher ASP sort of band, there clearly is a continued level of price competition that’s healthy.
So that’s how I would describe it is, there is definitely very healthy price competition out there. But at the same time, the ASPs have gotten up a little bit on a year-to-year basis. And Marshall, I don’t know if you have anything to add.
Marshall Witt: Yes. Just some color sequentially, Ruplu. Rich is right in terms of the ASP holding and improving year-over-year, clearly down in the PC ecosystem. But sequentially, we saw overall revenue improve. And so that was one of the reasons we also felt like there was some form of recovery underway. So just wanted to highlight that, from a quarter-to-quarter perspective we are starting to see the Endpoint Solution grow for Americas and Europe.
