Avnet is a global distributor of electronic components that acts as an intermediary between component manufacturers and customers such as original equipment manufacturers (OEMs) and electronic manufacturing services (EMS) providers. Avnet does not manufacture products but buys components in bulk to resell across more than 140 countries. The company primarily sells semiconductors, which account for the majority of revenue, along with interconnect, passive, and electromechanical (IP&E) components. Avnet operates through two segments: Electronic Components and Farnell. The Electronic Components segment serves high-volume customers and represents the core of the business. Farnell focuses on engineers and entrepreneurs, selling small quantities of components for prototyping through an e-commerce platform. Avnet generates profit from the spread between its purchase costs and resale prices. To enhance margins, Avnet provides value-added services such as design support from field application engineers, supply chain logistics, and embedded system integration. The company's strategy focuses on expanding its higher-margin IP&E product line and increasing demand creation by helping customers select components early in the design process. Avnet also targets growth in markets like industrial automation, robotics, and data center infrastructure.