• Technology Products Alert - Septemeber 2015

Welcome to this monthly Technology Products Alert. This monthly alert will keep you up to date with market trends and IT channel news giving you the knowledge you need to save time and money buying IT.

 

Executive Summary

 

25,992

The largest number of price increases happened on August 3, with 25,992 rises in a single day.

Jump to Monthly Stats
  • PC shipments have come into their fifth consecutive year of decline.
  • Enterprise storage revenues have increased.
  • Tablet shipments decreased, however, 2-in-1 sales are soaring.

The soft global economy has affected demand for several kinds of equipment, including displays and consumer notebooks. Gartner stated that CIOs in not just the Eurozone, definitely need to account fully for a 20% escalation in dollar product pricing, as a result of the continuing currency imbalance. Currency devaluation in Europe and Japan has even affected global semiconductor sales, that have been buoyant in the past, shrinking that market overall. The wearables market grew substantially, but this category is minuscule, and figures included the older fitness wearable category, along with smart watches. Printer sales were down, as were tablets. Even Smartphones –which are normally a buoyant sector –have experienced sales slow in the 2nd quarter.

PC sales are tumbling, and Windows 10 did little to stabilise them. Intel hopes that its latest Core offering, centred upon its SkyLake design, can give it a much-needed boost, although IDC doesn't see a comeback to growth until 2017 for the PC market.

Buyers seem to be embracing 2-in-1 hybrid devices instead, with Germany leading Europe in device shipments within this category. IDC expects global sales with this nascent design to develop by around 85% this year.

 

Exchange Rate

 

For once, the euro had somewhat of a good month in contrast to the pound. Starting only a little above its monthly low, at 0.7032, bottoming out at 0.6980 on the 6th August. From there, it rose to 0.7131 on the 14th August, lowering ever so slightly again before reaching a monthly peak of 0.7330 on the 27th August. Coasting in at a humble 0.7262 on the 31st August.

British Pound (GBP) per 1 Euro (EUR)

Exchange Rate Graph EUR vs GBP for August 2015

The euro's fortunes were similar in contrast to the dollar, even though it finished the month further down. Starting at 1.0974, it reduced to its monthly low on the 6th August, before increasing steadily to 1.1514 on the 26th August. From there, it dipped to 1.1181.

US Dollar (USD) per 1 Euro (EUR)

Exchange Rate Graph EUR vs USD for August 2015

The explanation the Euro's rise and fall, lay another world away, as concerns within the Chinese market sent stocks plummeting, the effects of this rippled across the globe. Investors fled emerging markets, searching for a safe harbour in the Eurozone. Analysts are now worrying about the US, if they fail to improve investment rates, the euro could continue steadily to rise subsequently affecting exports from Germany. On the contrary, it may help to fix a number of the currency devaluates that's impeded the sale of IT equipment in the region.

Euro (EUR) per 1 British Pound (GBP)

Exchange Rate Graph GBP vs EUR for August 2015

US Dollar (USD) per 1 British Pound (GBP)

Exchange Rate Graph GBP vs USD for August 2015  

Price Changes

 

Price Changes and News Through August, 2015

Phones and Tablets

Tablet shipments fell 4.4% in Western Europe during Q2, said IDC. The growth of Smartphone sales has been slowing, even in a number of the emerging markets that previously have been driving growth. Gartner stated that global Q2 2015 shipments grew at their slowest rate since 2013, totalling 330m units. Still representing an honourable 13.5% YoY growth rate. Chinese sales slipped, with the firm attributing it to market saturation.

Traditional PCs

PC shipments continue to fall. They are predicted to fall 8.7% altogether by the end of 2015, and they will not stabilise until 2017, said IDC. That will mean five consecutive years of decline. Heavily anticipated pre-Windows 10 inventories softened the growth following the latest operating system's launch, and currency devaluation has slashed sales. Desktop PC sales will represent 31.1% of PC market share in 2015, the organisation added.

Premium Ultra Mobiles

The dropping demand for larger notebook displays mirrors a rising demand in 11-inch units, said IDC. 1H 2015 shipments grew to 11m in comparison to 8m in 1H 2014, said the firm, which pointed to the Chromebook as a vital driver.

IDC stated that Germany could be the largest European market for 2-in-1 hybrid machines within the year finishing. This calendar year more than 800,000 detachable devices will have been shipped there. Many of them Windows-based and have sold to business users.

40 vendors are shipping 2-1-in units now, in comparison to 14 2 yrs ago, and sales are soaring. IDC saw a 71% YoY escalation in shipments for these units in Western Europe, and their market share also jumped to 7.3% of the entire tablet market for that region. The organisation is expecting global 2-in-1 sales to develop 86.5% YoY in 2015, representing 14.7m units.

The worldwide wearables market grew 223.2% YoY in Q2, said IDC. Apple is in at number 2, shipping 3.6m units for a 19.1% market share behind Fitbit's 24.3%. Total shipment volumes reached 18.1m units, up from 5.6m in Q2 2014.

Processors, MEMs, Semiconductors

Worldwide semiconductor sales were down 0.9% worldwide YoY to $27.9bn in July 2015, said the Semiconductor Industry Association. That decline was a result of Japan and Europe (sales decreased by an eighth in the latter), thanks partly to currency devaluation, the Association said.

Intel launched its sixth generation Core processor family, centred on its new Skylake design, which it hopes will bolster PC shipments.

Memory

DRAM market revenues grew 7.7% YoY in Q2, reaching $3.85 billion, said TrendForce. Mobile DRAM is propping up the marketplace, showing resistance to the price decline in contrast to other DRAM types, and it now represents 33.7% of the marketplace, the firm said. The introduction of next-generation LDPDDR4 has helped to improve the typical selling price within this buoyant subcategory.

Storage

IDC saw worldwide personal and entry-level storage shipments fall 9.7% YoY to 15.1m units in Q2. Worldwide enterprise storage factory revenue grew 2.1% YoY to $8.8bn during Q2 2015, said IDC. Hyperscale datacenters are fuelling the strongest revenue growth, bumping sales 25.8% and comprising 11% of the market. Server-based storage keeps growing, but external enterprise storage revenues slipped 3.9% YoY.

Displays

Demand for LCD TVs is softening, resulting in growing manufacturer inventory. The marketplace shifted to oversupply in Q2, said IDC, and therefore inventory levels will stretch beyond a norm of 4 weeks to achieve 4.9 weeks in Q3. That breaks a December 2013 peak of 4.7 weeks, it said.

Display shipments also reveal a great deal about notebook demand. Global 15-15.9-in notebook display demand slipped 14% YoY in 1H 2015, said IHS, to 38.4m units from 44.5m.

Printers

Worldwide printer shipments dropped 5.9% YoY to 24.1m in Q2, said IDC. Shipment values dipped 3.4% to $13.2bn. In Western Europe, shipments fell 2.6% YoY to 4.79m units. Bright spots were business inkjets, which increased 16.3% YoY, and multi-function printers. Standalone laser shipments dipped 5.5%, significantly more than inkjets, but lasers also showed a powerful revenue bump, helping to develop Western European printer revenues 6.6%.

Context research stated that the global personal 3D printer market continued to develop in Q2, even though industrial segment stalled. Personal 3D printer shipments increased 25% YoY in Q2, although the industry is reducing; the quarter marked the very first ever sequential decline in unit shipments in this category, the firm said.

If trends continue, desktop 3D printers will discover a device growth rate of over 50% YoY for 2015, as the industrial segment may only see single-digit growth rates. North America remains the strongest region, although European distribution deals could stoke the industry there too, it concluded.

Consumables

HP expanded its Instant Ink replacement service to its HP Envy, OfficeJet and DeskJet printers, arguing that printing costs could possibly be 50% significantly less than traditional purchasing models. The smart cartridges can reorder ink before they run out, having it delivered straight to the customer's door.

Network Products

Worldwide, Ethernet switch revenues grew 1% YoY in Q2 2015, reaching revenues of $5.8bn. Europe fared worse, with EMEA revenues declining 2.4% YoY. Enterprise router revenues grew 11.5% YoY, bouncing back from recent declines.

Consumer and enterprise WLAN revenues fell 5.3% YoY in Q2 2015. The enterprise market for these items slipped 1.2% YoY in EMEA, representing the very first market contraction in over a year.

 

Monthly Stats

 

The latest products hit their monthly peak on the 4th August at 581, before falling to a monthly low of just 11 the following day. They stayed relatively flat until mid-month, where they began rising, reaching this second monthly peak on the 21st August, with 510 new products.

Price rises also peaked early, reaching 25,992 on the 3rd August. Rises were more sporadic. They hit their second peak of 24,413 on the 10th August, and the next – 22,227 – on the 21st August through to the 23rd August.

Price decreases shadowed price rises for the first couple of days of August, reaching its peak of 26,505 on the 4th August. It hit its second peak on the 21st August through to the 24th August, when it registered 21,173 price drops each day.

HP increased prices more than other competitors while Cisco decreased them the most.

Stock increases at the start the month at 19,062 but didn't peak until the 26th August, here it reached 20,592. They experienced the exact same plateau between August 21st and the 23rd August, seeing 14,400 stock increases daily throughout that period.

Drops in stock peaked early, reaching 31,660 on the 3rd August, and saw their second peak on the 27th August, reaching 27,196. They hit a low of 6855 for a sustained three-day period between the 21st August and the 23rd August.

New Products Aug 2015

New Products Graph for August 2015

Prices and Stock Movements Aug 2015

Prices and Stock Movements Graph for August 2015

 

 



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