• IT Supply Chain Insights - October 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

 

22,799

The largest number of price increases happened on September 12, with 22,799 rises in a single day.

Jump to Monthly Stats
  • Smartphones will reach shipment growth for 2016
  • New Apple Watch boosts smartwatch shipments
  • Semiconductor sales revenue enjoyed monthly growth

The IT channel was relatively positive this month with several segments reporting growth in Q2 and the first half of this year. In some areas growth was forecast through 2017 across shipments, revenue and average prices.

Smartphone shipments will remain positive for 2016, average DRAM prices continue to increase, with the Apple Watch has boosting smartwatch shipments, and printer and panel shipments are up throughout the board with panel brands stocking up before peak season.

The euro began weak in contrast to the GBP but recovered well and enjoyed a smooth ride finishing the month off high, while against USD it started strong but fell hard mid-month, only recovering enough to finish the month where it started.

 

Exchange Rate

 

In contrast to GBP the euro first fell, dropping from 0.8452 to the month low 0.8371 on 6th September. After that it enjoyed a set of slow increments, finally rising to 0.8673 by 26th September. From there it quickly recovered from a small drop, ending the month at 0.8643.


British Pound (GBP) per 1 Euro (EUR)

 

Beginning at 1.1163 and an almost instant rise to 1.1185 on 2nd September, in contrast to the USD the euro fell to 1.1152. Just before peaking at 1.1261 on 8th September. Following a slow decline to 1.1242 by 15th September the euro then fell dramatically, bottoming out at 1.1154 on 17th September. After several rises and falls, the euro finished up on the month at 1.1211.

US Dollar (USD) per 1 Euro (EUR)

 

 

The causes behind the euros dramatic rises and falls this month? Inflation hit its highest level in over 2 yrs this month, up from 0.2% in August to 0.4% in September. Unemployment also remained stable at 10.1%. With focus on the March 2017 Brexit it sent the pound on a rollercoaster.

Euro (EUR) per 1 British Pound (GBP)

 

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

 

 

Price Changes

 

Price Changes and News throughout September, 2016

Phones and Tablets

Global smartphone shipments will reach 1.46bn units in 2016, representing a 1.6% YoY growth. By platform Android will increase shipments 6.7% to 1.2bn units for the year while maintaining an 85.3% market share, stated IDC. IOS who with a 12% drop in units shipped followed. The Windows phone is anticipated to fill third place with 7.2m units shipped. Its shipments will undoubtedly be down 75.2% YoY, and the platform could have just 0.5% of the market.

Traditional PCs

FutureSource reports, it is a challenging year for personal computer sales in the education K-12 sector, with first half-year sales down 12% YoY in 2016 from 14m to 12.4m units.

In line with the report, global shipments in this sector will rebound in 2017 with 19% growth to over 30m units.

Premium Ultramobiles/Wearables

The FutureSource report predicted that and hybrid 2-in-1 devices are likely to stir up the US market, growing from 6% of device shipments in 2015 to 18% in 2017.

Global smartwatch shipments will grow 3.9% YoY in 2016 to attain 20.1m units following the new Apple Watch, and continue to reach 50m units by 2020. Watch OS will reach 10.5m units and 52.3% market share in 2016, accompanied by Android's competing Wear OS in second place with 4.6m units and 22.9% market share, according to IDC’s report.

ABI research predicts that, workplace wearables will reach 83m units and $14bn in revenue by 2021. They added in another report that the growth will come from productivity boosting wearable scanners like ring barcode scanners, smart glasses and glove scanners.

Processors, MEMs, Semiconductors

Global semiconductor sales were up 2.6% in July on the month reaching $27.1bn and the greatest month-to-month sales growth since September 2013, in accordance with the Semiconductor Industry Association (SIA).

By region America (3.3%), China (3.2%), Japan (3.1%), Asia Pacific (1.8%) and Europe (0.7%) each enjoyed an increase in sales in July on the month, yet YoY sales were down throughout the whole sector, as a result of Japan (-1.1%), Europe (-4.9%), Asia Pacific (-6.8%) and America (-7.5%). China bucked the YoY trend with 4.7% growth.

Memory

TrendForce produced several reports on memory this month. One noted the tightening of the NAND Flash market gave it some stability and revenue enjoyed 3.4% sequential growth in Q2, while another saw average 4GB DDR3 and DDR4 DRAM prices rise 2% sequentially to $13.5 in August.

Trendforce also predicts DRAM contract prices will increase 10% QoQ by Q4 and continue to savour growth into 2017 on the back of Apple and the major Chinese smartphone brands generating demand that’s outpacing supply in Q3.

 

Monthly Stats

 

New products started at 20, fell to 12 by 15th September, stayed stagnant around 20 and then jumped to the month high 43 by 16th September. Then back down to 19 on 21st September, another rise and then fall to 18 by 27th September, it rose again to complete the month at 38.

Both price increases and price reductions by manufacturer was yet again dominated by Cisco.

Daily total price increases started at 10,141 and fell immediately to 4,138 where it sat for three days. An almost instant jump to 13,573 on 5th September was followed with a drop to 4,668 and a rapid increase to 21,198 on 8th September. The remaining portion of the month was similar in movement, with notable mentions including the month high 22,481 on 20th September and low of 2,184 on 26th September and ending the month at 3,382.

Daily price decreases were just as unstable. Starting at 16,844 and jumping immediately to 28,843 where it sat for three days, price decreases then dropped to 15,010 on 7th September. After hitting the month high 29,568 from 9th to 11th September and falling to the month low 2,845 on 12th September, the remaining portion of the month continued to increase and decrease until ending the month up at 18,979.

Stock up started low at 2,715 and rose high to 19,904 by 6th September. Down again to 2,060 and as much as 23,691 on 9th to 11th, this pattern continued until ending the month at 3,109. Stock decline fell from 12,944 to 9,672 on 2nd to 4th September, peaked at 27,668 by 8th September, dropped to 7,725 by 16th to 18th September and ended the month sitting at 9,881.

New Products September 2016

 

Prices and Stock Movements September 2016

 

 



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