• IT Supply Chain Insights - August 2017

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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

 

43,849

The largest number of price increases happened on July 24, with 43,849 rises in a single day.

Jump to Monthly Stats
  • Smartphone shipments on the way up
  • Worldwide PC shipments continue steadily to fall
  • Semiconductor revenue breaks records

It was a somewhat strong month for the IT channel in July. Smartphones shipments were set to rebound, personal computing devices were forecast to reach positive growth, wearable sales increase, semiconductor revenue cracked $400bn, the AMOLED panel market rapidly expanding, and the euro ended strongly in contrast to the GBP and USD.

 

Exchange Rate

 

In contrast to the GBP the euro started at 0.8766, increasing slowly to attain 0.8893 by 12th July. It dropped to 0.8751 by 16th July and then enjoyed a big jump, reaching 0.8978 by 23rd July. A small dip to 0.8927 on 27th July was accompanied by an increase to 0.8949 on 31st July.


British Pound (GBP) per 1 Euro (EUR)

 

Things were a lot more positive in contrast to the USD this month, with the euro starting at 1.1421, dropping to 1.1344 by 5th July and then gradually rising for the rest of the month, hitting 1.1544 by 18th July, 1.1670 by 23rd July and ending the month up at 1.1769.

US Dollar (USD) per 1 Euro (EUR)

 

 

Just like the currencies, the eurozone continued its strong performance in July. The Financial Times said unemployment was at its lowest in 8 years, and Reuters said business activity was strong despite losing some momentum, with PMI sitting at 55.7, down slightly from June's 56.3. Reuters also reported inflation jumped to 1.3%, up from 1.2% in June, the fastest inflation has grown in four years.

Euro (EUR) per 1 British Pound (GBP)

 

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

 

 

Price Changes

 

Price Changes and News Throughout July, 2017

Phones and Tablets

TrendForce has forecast the newest iPhone smartphone models will reinvigorate the smartphone market after an indifferent 1H. Production volume is likely to jump significantly more than 10% in 2H on 1H with a complete annual volume forecast now set to attain 1.39b units.

Gartner says worldwide shipments will grow 5% YoY in 2017 to nearly 1.6b units.

After six consecutive quarters of growth, Chinese smartphone vendors experienced a 3% YoY shipment decline in Q2 to 113m units, says Canalys.

The Independent said Q2 had the biggest worldwide smartphone sales on record, up 4% YoY to 347m units. Western Europe dipped for the next consecutive quarter, though, falling 3% YoY to 28.7m units sold.

Worldwide tablet shipments fell 3.4% YoY to 37.9m units in Q2. Apple led industry with 14.7% YoY growth to 11.4m units and 30.1% market share, reports IDC, accompanied by Samsung (-0.8% to 6m units), Huawei (+47.1% to 3m units), Amazon (+51.7% to 2.4m units) and Lenovo (-14.6% to 2.2m units).

Traditional PCs

Gartner reported, worldwide PC shipments fell 4.3% YoY to 61.1m units in Q2, rendering it the 11th quarterly fall, in a row. HP grew 3.3% to top the quarter with 12.69m units and 20.8% market share, above Lenovo (-8.4% to 12.18m & 19.9% share) and Dell (+1.4% to 9.55m & 15.6% share).

Worldwide shipments of traditional PCs for Q2 reached 60.5m units, down 3.3% YoY, noting inventory build-up from component shortages as the explanation for the continuous decline, IDC reported.

Gartner states worldwide personal computing device shipments will decline just 0.3% YoY in 2017 but jump 1.6% in 2018. Traditional PCs will drop from 220m units in 2016 to 203m in 2017, and continue steadily to fall to 191m by 2019. Premium ultramobiles will rise from 50m units shipped in 2016 to 59m in 2017 and 82m in 2019, taking the entire PC market from 270m in right down to 262m in 2017 but back as much as 272m by 2019.

Premium Ultramobiles/Wearables

The commercial market is driving 2-in-1 devices with detachable shipments set increase 21.2% over the following four years, says ComputerWorld.

Wearable shipments are expected get to 125m units for 2017, Market Realist reported, with smartwatches to account for 57%.

The United Kingdom and Germany are driving smart home products in Western Europe, with 32% of spending going on voice controlled products, says Gartner. Amazon Echo (28%) currently leads Google Home (24%) as the most trusted voice-controlled product.

Processors, MEMs, Semiconductors

Worldwide semiconductor revenue will reach $401.5bn in 2017 up 16.8% YoY in 2016, states Gartner. This will be the industry has reached $400bn. Worldwide semiconductor revenue has previously reached $200bn in 2000 and grew to $300bn by 2010.

The Semiconductor Industry Association says global sales reached $21.9bn in May, up 22.5% YoY and 1.9% on April.

Samsung has topped Intel as the greatest chipmaker by revenue. Based on the report, Samsung posted Q2 sales of $15.7bn because of its semiconductor unit, while Intel dropped to $14.8bns states Investopedia.

Memory

After stronger-than-expected DRAM demand and enjoying 35% YoY upsurge in Q2 revenue, manufacturer SK Hynix announced it's expecting 20% shipments increase over the following year, with an integral focus on server chips over smartphone chips.

Intel will remain behind Samsung for memory chip manufacturing revenue and profit until at the least the conclusion of 2017, states Investopedia.

Storage

36 months after acquiring Xyratex, the maker of ClusterStor, Seagate has sold its ClusterStor HPC storage business to Cray. In accordance with NetworkWorld, Cray, which already uses the technology, will dominate development, manufacturing, support and sales of the technology.

Bringing it in-house enables the organisation to compete big brands like Dell EMC in the HPC industry.

A new magnetic tape storage system that'll hold 330TB of uncompressed data on a palm-sized cartridge, has been unveiled by IBM. Referred to as a typical backup solution in enterprise storage, magnetic tape can also be actively being utilized in cloud storage backup and recovery, TechRepublic reported.

Displays

The IHS says worldwide AMOLED panel market will grow 63% YoY in 2017 to attain $25.2bn and to develop to $40b by 2021.

TrendForce reported global LCD TV panel shipments reached 123.23m units in 1H 2017, down just 0.1% YoY. LG topped the seller list with 25.27m units, down 1.1% YoY, while Innolux jumped into second with +2.2% YoY growth to 20.25m units. BOE dropped to third with 19.5m units (-13.1% YoY) and Samsung came in fourth with 18.41m units (-14% YoY). China Star Optoelectronics rounded out the very best five up 22.2% to 18.172m units.

In other news, Foxconn has announced a $10bn investment in building an LCD panel manufacturing facility in Wisconsin, USA. The move is seen as an investment to stay competitive by reducing supply chain logistics in key regional markets.

Printers

Context reported, sales of laser printers in Western Europe dropped 5% YoY in Q2, with Belgium (-36%), Norway (-34%) and Finland (-28%) hit the hardest. The UK (+8%) and Denmark (+3%) were the only countries to record positive sales growth. HP led the industry with 41% share, followed by Brother (18%) and Samsung (16%).

 

Monthly Stats

 

Monthly Statistics

New product started at 110, jumped to 303 on 3rd July, dropped to 72 on 4th July, recovered, sat at 234 on 8th- 9th July and then soared to 4608 on 10th July. Dropping landing at 59 by 18th July, an instant rise to 1183 on 20th July was accompanied by another drop, rise, and fall to low of 30 on 25th July before winding up at 1043 on 31st July.

Honeywell Bull, QNAP and PNY led price increases by manufacturer while Cisco, V7 and Kingston Technology topped the purchase price reductions list.

Daily price increases started at 7880, fell to 5609 on 3rd July, rose to 22,737 by 10th July, fell, jumped to 37,057 on 12th July and then dropped to 1897 on 14th -16th July. Then a series of peaks and troughs followed with highlights including jumping to 43,849 on 24th July, dropping to 1856 on 27th July and then recovering to conclude the month up 14,429.

Daily price decreases started at 29,605 but dropped to 12,872 on 3rd July 3. A recovery followed, before dropping to 9381 on 7th- 9th July. This trend continued for the rest of the month, with highlights including dropping to a low of 519 on 14th – 16th July, hitting a high of 30,135 on 26th July 26, sitting steady at 27,738 on 28th- 30th July, ending the month at 17,287.

Stock up started and finished at an identical point this month. July highlights include starting at 4172, dropping to 2575 on 3rd July, jumping to 8004 on 12th July, dropping to 877 on 14th-16th July, increasing at 9154 on 20th July and ending the month at 4076.

New Products July 2017

 

Prices and Stock Movements July 2017