• IT Supply Chain Insights - September 2016

Welcome to this monthly IT Supply Chain Insights. 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

 

29,186

The largest number of price increases happened on August 8, with 29,186 rises in a single day.

Jump to Monthly Stats
  • Worldwide printer shipments are up
  • DRAM prices continue to rise
  • 8k panels set for mass production

The IT channel appeared much more positive this month with some surprising growth areas, while other sections continued to see shipment and revenue declines.

Smartphone sales, panel shipments and DRAM prices were all up, printers experienced a variety of ups and downs, while notebook shipments fell only slightly. The euro also showed signs of strength with strong mid-month rises in contrast to both the GBP and USD, but fell hard later in the month.

 

Exchange Rate

 

Starting at 0.8451 and falling immediately to 0.8397 by 3rd August, the euro recovered and rose strongly in contrast to the GBP reaching 0.8677 by 16th August. After a brief time of stabilisation the euro again fell, pausing briefly at 0.8539 on 24th August before ending the monthly slightly up compared to the start of 0.8501.


British Pound (GBP) per 1 Euro (EUR)

 

In contrast to the USD the euro also enjoyed a solid rise mid-month in what otherwise started and ended poorly. Beginning at 1.1169 and dropping to 1.1083 on 6th August, the euro then rose, peaking at 1.1329 on 19th August where it stayed until 23rd August. From there it was all doom and gloom, falling dramatically to conclude the month down at 1.1147.

US Dollar (USD) per 1 Euro (EUR)

 

 

The French economy was the hot topic within the Eurozone this month. The strong growth in the private sector helped to stabilise the Eurozone’s economy following sluggish performance and labour protests this year. Even so, inflation in the region remained flat-line at 0.2%, while economic confidence plummeted.

Euro (EUR) per 1 British Pound (GBP)

 

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

 

 

Price Changes

 

Price Changes and News throughout August, 2016

Phones and Tablets

Gartner reported, worldwide smartphone sales to end users grew 4.3% YoY to 344m units in Q2. While Samsung enjoyed growth to keep their top spot with 22.3% market share, Apple sales fell for the third quarter in a row, down 4m units (7.7%) YoY to 44.4m units.

By OS, Android expanded another 4% in Q2 to keep 86.2% market share, while Apple in second place dropped 1.7% YoY to 12.9% market share.

In tablet news, worldwide tablet shipments fell 12% YoY to just 38.7m units, reported Gartner.

Traditional PCs

Q2 worldwide notebook shipments fell 4% YoY to 74.18m units, stated TrendForce, while Lenovo led the half-year shipments with 16.15m units, 21.8% market share and 4.1% YoY growth. HP's strong Q2 (17.9% growth on Q1) kept it in second place half-year shipments with 15.8m units, 21.3% market share and a 1.6% YoY growth.

Dell in third enjoyed the strongest half-year YoY growth with 11.1%, while Asus claimed fourth with 10.9% market share and 1.5% YoY growth. Despite a 30.3% recovery on its MacBooks in Q2, Apple's weak Q1 results (-40.4%) saw it round out the best five with 7.9% market share and global shipments down 23.4% YoY.

Premium Ultramobiles/Wearables

Spending on VR in Canada alone will reach US$500m in 2017, says IDC and will expect growth at 230% within the coming years while the Canadian market matures. Forecasts from IDC also predict the augmented and VR markets in Central and Eastern Europe will grow at 177.7% compound rate reaching $5.54bn revenue in 2020.

Meanwhile, in accordance with FutureSource worldwide video drone sales reached $1.5B in 2015 with 500,000m individual drones registered to the FAA in the USA and 2,000 companies registered to fly in the UK.

Processors, MEMs, Semiconductors

The Chinese government has backed the development of a semiconductor alliance featuring 27 organisations that'll foster an ecosystem to produce high-end chips on a national scale. The alliance will remove barriers and accelerate advanced development and integration, states TrendForce.

Meanwhile, IHS says power semiconductor revenue fell 2.6% YoY in 2015 to $35b.

Memory

According to TrendForce, worldwide DRAM revenue rose 6.3% in Q2 on Q1 reaching $9.1b. Samsung topped the list of revenue by vendor with 8.7% growth to $4.3b and 47.4% market share, followed closely by SK Hynix (4% growth, $2.4b and 26.5% market share) and Micron Group (8.8% growth, $1.7b and 19% market share).

Mobile DRAM revenue grew 17.2% sequentially in Q2 with exactly the same vendors as above holding the same positions, states TrendForce. Overall DRAM prices grew in August on July, the market tracking company said, with average contract costs for 4GB DDR3 and DDR4 up 2% to $13.5. The report also predicts DRAM prices to cultivate right through to Q4.

Storage

SSDs are predicted by TrendForce to have a third of the notebook market concluding 2016, and around 50% market saturation in notebooks by 2018, as prices stabilised in the initial half of this year.

Displays

TrendForce states, Taiwan's panel manufacturers could be the first to mass-produce 8K panels. Worldwide panel shipments grew 5% in July on June and 2.2% YoY with 22.8m units. Stock demand will peak in August, and rising panel prices are anticipated to spur the replenishing of inventory, the organisation said.

IHS released a report on the worldwide panel supply market, weak demand in Q1 led to supply of flat panel displays exceeding demand by 20%, the worst since 2012. The reported stated Q2 results are on course to improve the market and will result in a limited end for 2016.

Meanwhile, Q2 worldwide LCD TV panel shipments reached 48.68 units, up 1.2% on Q1, with Samsung out-shipping LG and Hisense. LG claimed the top spot for the position all TV panels shipped in July, followed closely by Samsung and BOE.

Printers

IDC reported, worldwide revenue for the 3D printing market will reach $35.4b by 2020, significantly more than double the $15.9b it'll deliver in 2016. In line with the report, automotive designs and aerospace and defence parts are the greatest revenue streams, while dental printing is emerging as a powerful opportunity.

Worldwide production printer shipments (+10%) and large format printer shipments (+3.9%) shipments enjoyed YoY growth in Q2, whilst in Western Europe, the printer and multifunction market fell 5.8% in Q2 YoY to 4.5m units shipped. In line with the IDC report, multifunction printers accounted for 81.4% of most printers shipped in Western Europe in Q2, up 0.4% on the 2016 average.

 

Monthly Stats

 

New products started at 28, jumped significantly to 88 on 3rd August , dropped back down to 23 on 4th August and then sat between 9 and 28 for the remaining month until ending at 16.

Cisco yet again dominated both price increases and price reductions by manufacturer.

Total daily price increases saw no stability this month, starting at 17480, dropping to 4892 on 4th August and jumping to 15,676 on 5th-7th August before peaking at 29,186 on 8th August. The segment continued to increase and decrease for the remaining portion of the month, including a decline to 1,214 on 25th August, before ending the month down at 4,776.

Daily price decreases were just as unstable, first jumping from 13,827 to 15,444, back again to 13,402 on 3rd August and rising to the month high 19,807 on 4th August. A huge drop to 2,716 by 9th August was then accompanied by peaks and troughs, which included hitting the month low 914 on 30th August and recovering to 9,885 on 31st August.

Stock up started high but fell dramatically, falling from 30,094 to 2,599 on 2nd August, sitting at 10,607 from 5th- 7th August, as much as 26,118 on 9th August and down again to 3,358 from 12th-14th August, all before peaking at 43,108 on 18th August and bottoming out at 426 on 30th August. Stock declines were similar, although enjoyed three days at 43,852 on 19th-21st August before dropping to 2,838 on 30th August. Both recovered with stock increases ending the month at 19,956 and stock decreases at 12,531.

New Products August 2016

 

Prices and Stock Movements August 2016

 

 



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