• Technology Products Alert - November 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

 

23,206

The largest number of price increases happened on October 28, with 23,206 rises in a single day.

Jump to Monthly Stats
  • Tablet market sees fourth consecutive quarterly decline
  • EMEA PC shipments fall 23% YoY
  • Q3 semiconductor sales slide 2.8% on last year

Things seem downcast overall for the IT channel. The Euro carries on plummeting, and economic experts are shocked about the condition of the worldwide economy. All this is reflecting within the IT industry's fortunes, as currency disparities continued to decrease sales.

PC shipments carry on falling, but whereas tablets were once the saving grace for the IT sector, they, too, are declining exponentially as industry nears saturation point and customers are unable to replace them. New models such as the iPad Pro are anticipated to do very little to prevent the trend as innovation in this industry as the market dries up. Apart from smartphones, only 2-in-1 devices promise to fire up market activity, however they represent a comparatively small market.

These poor fortunes are reflected in other markets. Semiconductor sales are down, and DRAM prices have dropped. There are several promising signs, though: Apple, as an example, topped analyst forecasts with its Q4 earnings, driven by strengthened iPhone sales, although CEO Tim Cook is concentrating on China as a rise area.

 

Exchange Rate

 

The Euro fared poorly in contrast to the Dollar overall in October. Starting at 0.7377, it puttered along for the initial half of the month, and then climbing slightly to a monthly high of 0.7440 on 13th October. Following that, its fortunes regressed. It dropped into two sharp increments, one from 14th – 16th, and another on the 23rd, featuring its biggest value dive throughout the latter. It ended at its monthly low of 0.7128.

US Dollar (USD) per 1 Euro (EUR)

Exchange Rate Graph EUR vs USD for October 2015

The curvature was very similar in contrary to the Dollar, even though the Euro climbed more at the beginning. The Euro started the month at 1.1168 and increased to a high of 1.1437 on 15th October, before dipping slightly and plateauing for several days. After that it saw a dramatic decrease from the 21st October to the 23rd, and limped in at 1.1001 to conclude the month.

British Pound (GBP) per 1 Euro (EUR)

Exchange Rate Graph EUR vs GBP for October 2015

So what is the explanation of the Euros woes this month? A proposed cut in rates of interest, following European Central bank promises that they would eliminate quantitative easing. The deposit rate within the Eurozone is currently negative, at 0.2%. Look for an ultimate decision on that in December, and a potential further fall within the Euro’s value in the event the ECB goes ahead with it.

Euro (EUR) per 1 British Pound (GBP)

Exchange Rate Graph GBP vs EUR for October 2015

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

Exchange Rate Graph GBP vs USD for October 2015  

Price Changes

 

Price Changes and News throughout October, 2015

Phones and Tablets

Q3 2015 worldwide smartphone shipments bumped 6.8% YoY to 355.2m, which IDC said was the 2nd highest quarter of shipments ever. Samsung led the industry with 23.8% share of the market, hammering Apple's 13.5%.

Things were a little less shiny in the tablet market. IDC saw the 4th consecutive ¼ of global shipment declines in the tablet with 48.7m units shipping in Q3. This represents a 12.6% YoY decline. Individuals are holding onto tablets longer. Gartner surveyed 19,000 consumers over Britain, France, the US, China, Brazil, and India, discovering that only 17% of those intend to purchase a tablet within the next 12 months.

Apple led tablet shipments throughout the 1/4, shipping 9.9m units. Samsung sold 8m, with Lenovo, ASUS, and Huawei bringing up the rear. All but Lenovo lost business to Huawei, which increased shipments 147% YoY to a comparatively small 1.8m units in Q3 2015.

Traditional PCs

EMEA PC shipments slumped to 23% YoY, to 18.4m, said IDC. Western Europe slipped 18.4% to 11.8m units, while politically-fraught central and Eastern Europe (CEE) bore the brunt, plummeting 31.3%.

The buyer market fared worst. Western European consumer shipments plummeted 24%, not helped when compared to the strong Q3 2014 shipments of low-cost Bing notebooks. The UK market did slightly better than other European markets, having an 11.4% decline.

All vendors saw declines in EMEA shipments, but Acer suffered the worst having a 38% slip. Dell's was the least painful quarter having only an 11% decline. HP continues to top having a 22% market share, and saw a 17.1% fall in EMEA shipments throughout the quarter.

Premium Ultra Mobiles

Included in Gartner’s survey, was the discovery that 13% of laptop owners who'd buy within the next twelve months would purchase a convertible notebook (with a screen that does not detach, but which folds around creating a tablet). A further 12% stated they would buy a 2-in-which has a detachable screen.

Apple neglected to escape Apple Watch sales in its year-end results, but analyst firm Canalys declared shipments had reached 7m within the last 2 quarters, other smartwatch sales in the previous five quarters.

Processors, MEMs, Semiconductors

Semiconductor sales are feeling the pinch. Global sales reached $85.2bn during Q3, based on the Semiconductor Industry Association that was 2.8% lower than Q3 2014.

Gartner forecast 2015 revenues at $337.8bn this season, representing a 0.8% decline from 2014 and the initial since 2012. Global capital spending on semiconductor manufacturing will dip 1% in 2015 to $63.9bn, based on Gartner. This contrasts starkly with the 2.5% growth it anticipated last quarter.

Vendors are shocked with the uncertain economic environment including the demand disparity caused through the strong Dollar, as well as weak Chinese economy.

Memory

The DRAM market was more sluggish than expected last quarter, Gartner said, due to poor market conditions along with the capacity glut following online plants sprouting up from Samsung and SK Hynix.

DRAMeXchange stated that the typical contract cost of 4Gb DDR3 modules dropped 10% from $18.5 in September to $16.75 in October. The organisation pointed to weak notebook demand as a primary factor here, arguing that Q4 notebook shipments would likely contract 1%.

Storage

The depressed PC market has taken its toll on HDD sales. Western Digital reported 51.7m sales in the most recent quarter ended 2nd October, in comparison to 64.7m 12 months prior. The majority of the market strength lay in 2.5in devices for game consoles and notebook PCs. SSD revenue increased 43% YoY from $156m to $244m. This could be further bolstered down the road through the firm's impending purchase of SanDisk, which Western Digital announced for $19bn in mid-October.

Seagate, also hammered from the flat PC market, saw a similar sharp fall in enterprise storage shipments, which fell 11% YoY to 7.8m units.

Displays

Global LCD TV shipments fell 1.8% YoY to 53.1m units, based on TrendForce, as a result of stagnation in Europe and emerging markets.

Interest in ultra-high TV sets remains strong, said IHS. The organisation forecast a doubling of UHD shipments in 2015, topping 40m units globally. This market, which consists of 4K televisions, will represent 40% the whole TV panel shipment area the coming year, the business predicted, adding that UHD demand will reach 67 million units next season, up 67% from this year.

Prices for UHD TV panels are narrowing. Last year, the space between open-cell 55-in panels as well as the equivalent full HD panel was 30%. Now, it stands at 11%.

Printers

MFP shipments grew 12% YoY throughout Western Europe in Q3, said Context Research. Colour MFPs led the charge, comprising one in five shipments and growing 17% YoY. Price competition would be was obviously a big factor here, with the typical cost of these products dropping 14% to €517.

Mono MFPs grew to a far modest 8% YoY, bolstered particularly by strong UK growth, where shipments rose 26%. The typical value of these products across Western Europe dropped 4% to €233.

Laser MFPs grew 5% within the UK, the organisation added.

Consumables

LexMark put disappointing revenues as a result of weak demand for both laser printers and supplies. The organisation declared interest in supplies dropped 17% to $493m YoY in the fiscal Q3, as cost-conscious customers tightened their spending on printing.

 

Monthly Stats

 

New products started high, reaching 474 on 2nd October, however, they slipped the 5th October into a trough where recovery was not seen until later in the month. On 20th October, they shot as much as 525 from 77 the day before, and then peaked twice more, finally reaching their high of 570 on 27th October after which plummeting towards the monthly low of 7 on 30th October.

Price increases topped out at 23206 on 28th October, having a monthly low of 48 shortly before on 26th October. Price increases overall saw a trough during the middle of the month between the 15th and 18th October.

Price decreases saw their monthly high of 23,425 on 17th and 18th October, and lows of 28 on 26th October, 2350 on 22nd October, and 4928 no 5th October. Cisco issued the greatest number of price increases and decreases throughout the month of October.

Stock increases saw three peaks over a normally flat month. They hit 19818 on 7th October, 21483 on 12th October, along with a monthly high of 25083 on 28th October. Stock drops saw four key peaks, a couple of which were plateaus. On 5th October they reached 25229, and from 9th- 11th October they hit 29883. They hit another plateau of 29631 from 23rd-25th October, and ultimately hit 27711 on 29th October. Both stock increases and decreases saw their lowest point on 26th October.

New Products October 2015

New Products Graph for October 2015

Prices and Stock Movements October 2015

Prices and Stock Movements Graph for October 2015

 

 



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