• IT Supply Chain Insights - July 2017

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

 

36,556

The largest number of price increases happened on June 14, with 36,556 rises in a single day.

Jump to Monthly Stats
  • India set to overtake US for worldwide smartphone loads
  • Semiconductor revenue increase at seven-year high
  • TV panel shipments down in Q1 but set to relish in large Q3 growth

June proved a disrupted month for the IT channel. Smartphone and enterprise storage shipments fell, TV panel shipments dropped, PC devices were down in the UK and Toshiba announced the selling of its memory business.

On the contrary VR headset shipments jumped, PC sale prices rose, wearable revenue is predicted to double, DRAM contract prices grew, printers achieved an increase and the euro rose in contrast to GBP and USD.

 

Exchange Rate

 

The euro started out against GBP at 0.8722, increasing to 0.8748 on 4th June and then dropped to 0.8678 by 8th June. An instant leap to 0.8785 on 9th June and again to 0.8820 by 13th June was accompanied by another dip, this time to 0.8742 by 16th June. Carrying on in this downwards spiral, the euro peaked at 0.8836 on 28th June but fell to conclude the month at 0.8785.


British Pound (GBP) per 1 Euro (EUR)

 

For most of the month the euro was flat against the USD, starting at 1.1229, rising to 1.1280 on 3rd – 4th June, and then gradually fell to 1.1141 by 21st June. A small rise to 1.1192 on 26th June was accompanied by a rapid jump to conclude the month on a high at 1.1423.

US Dollar (USD) per 1 Euro (EUR)

 

 

The narrower-than-expected UK election result had an obvious impact on confidence in sterling, spiking the euro's value in contrast to the pound. Reports this month say the eurozone economy reaches a 6 year high with no sign of slowing down. Both Fortune Finance and Reuters noted manufacturing PMI hit 57.4, up 0.4 points on May and the best since April 2011. With demand and optimism growing, work has risen to 13-year highs, and unemployment numbers dropped to 9.3%, their lowest since 2009. In line with the Fortune report, British numbers were much slower compared to the eurozone, dropping to a 3-month low of 54.3 on the rear of increased inflation, and GBP value steadily falling because of the Brexit vote..

Euro (EUR) per 1 British Pound (GBP)

 

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

 

 

Price Changes

 

Price Changes and News Throughout June, 2017

Phones and Tablets

TrendForce said stalling worldwide smartphone shipments for 1H 2017 has led vendors to shift from the mainstream 16:9 to a full-screen 18:9 display ratio format. They're attempting to improve shipments and drive an active end to the season.

Gartner stated that worldwide smartphone shipments will experience little increase within the next 5 years, beginning with 2017 ending at 5% up YoY.

India will overtake the US for smartphone shipments by 2019 and claim 15% of the forecast 2bn in worldwide shipments, according to Gadgets 360. The US will account fully for 10%, while China will maintain its lead at nearly 50%. This article also noted worldwide Q1 shipments reached 375m smartphones.

Traditional PCs

Q2 PC sale prices increased 19% in Western Europe in the first section of the quarter, with price rises noted in both consumer and business PC segments, reported Context. The UK led this increase with at 42% for initial Q2 YoY, followed by Sweden and Poland with 18% each.

The UK personal computing market remained at a loss in Q2 with volume dropping 10.8% YoY. Which may be a contributing factor to a 6.8% deduction in 2017 YoY shipments, reaching 3.2m units. The good news, however, is detachable/hybrid tablets are predicted to jump 27.6% in 2H.

Premium Ultramobiles/Wearables

Global shipments of AR and VR headsets reached 2.28m units in Q1. VR accounted for 98%, with two-thirds of these screen-less viewers, for example Samsung's Gear and Google's Daydream VR. Samsung claimed 21.5% market share with 489,500 units, next - Sony (18.8% market share) followed by HTC (8.4% market share).

Wearables will achieve $55bn in revenue by 2022, up from $10.5bn in 2017, said ABI Research. Worldwide wearable market shipments will reach 240.1m units by 2021, up from 125.5m units in 2017. Shipments this year will increase 20.4% in comparison to 2016's 104.3m units. By product type, watches will lead wristbands, clothing and earwear.

The IDC reported, worldwide spending on IoT will grow 16.7% YoY in 2017 to $800bn, and continue to increase to $1.4tn by 2021.

Processors, MEMs, Semiconductors

Worldwide semiconductor sales reached $31.3bn for April, up 20.9% YoY and the biggest single YoY growth since September 2010, announced The Semiconductor Industry Association (SIA). It predicted that 2017 will relish 11.5% YoY growth, while 2018 is likely to be up 2.7% and 2019 up just 0.2%.

Memory

TrendForce said the continuing supply shortage in the NAND Flash market saw contract prices rise over 20% in Q1 on Q4, and in the server DRAM market found module contract prices on the quarter rose 40% in Q1 and 10% in Q2. Shortages of server DRAM are expected to carry on throughout the rest of 2017. Worldwide Q3 DRAM prices across the industry will increase 5% on Q2 reports TrendForce.

In other news, concerned Toshiba is selling off its memory business with a US-Japanese consortium the existing front runner to buy. In accordance with TrendForce, Toshiba's memory business made $1.97bn in revenue and 16.5% of the industry in Q1.

The rare and highly customised NOR flash is in increasing demand on the rear of AMOLED smartphones using Touch with Displace Driver Integration (TDDI). Regardless of the demand and 20% escalation in contract prices, manufacturers are looking get rid of NOR production because of the difficulties in manufacturing and their inability to boost worldwide production from it's current 88,000 pieces per month, reports TrendForce.

Storage

The worldwide enterprise storage market fell flat in Q1, TrendForce reported, with revenue down 0.5% YoY to $9.2bn despite capacity shipments rising 41.1% YoY to 50.1 exabytes.

In Western Europe, external storage revenue fell 0.8% YoY in Q1 to $1.22bn in market value, reports TrendForce. In positive news, all-flash array storage solutions grew 107.1% YoY and flash storage systems now account for 70.3% of the region's market value.

Displays

Worldwide TV shipments fell 4.7% to 46.7m units in Q1 despite average panel sizes growing to just over 42”, and 55”+ panels accounting for 22% of all shipments, up from 16% in Q4. Korean brands Samsung and LG combined for 35% of most units shipped, said IHS.

Going forward Korean and Chinese TV makers will relish over 25% QoQ escalation in panel demand in Q3 following Q2's less than expected purchasing numbers, reported IHS.

TrendForce reported a current casualty and subsequent shut-down of operations for investigation at LG's large-size LCD production factory in late-June will result in a 0.6% drop in manufacturing numbers, constricting a currently tight Q3 panel supply forecast.

HDR panels have infiltrated the PC market with 4K 27”+ LCD PC monitors proving popular in the gaming world, reports TrendForce.

In other news, automotive touchscreen shipments will reach 50m units in 2017, up 11% YoY, IHS said.

Printers

Worldwide 3D printer shipments rose 29% YoY and revenue was up 18% YoY in 2016, stated IDC.

IDC reported, worldwide hardcopy peripheral shipments enjoyed a 1.2% YoY growth in Q1 to 23.4m units. Inkjet (2.2%) and laser (1%) both relished in positive numbers as HP led the industry with 3% YoY growth to 8.6m units and 36.9% market share. Canon followed with +0.6% to 4.5m units and 19.4% market share, alongside Epson (+5.6% to 4.3m and 18% share), Brother (+0.6 to 1.78m units and 7.5% share) and Samsung (-4.2% to 973,048 and 4.2% share) rounded out the top five.

 

Monthly Stats

 

Monthly Statistics

New products started at 433, fell to 195 by 4th June, jumped to 518 on 5th June and dropped to 47 on 6th June. This trend continued for the rest of the month, with highlights including dipping to a low of 11 on 10th- 11th June, hitting a peak of 909 on 14th June, holding steady at 515 on 17th – 18th June, dropping to 65 on 27th June, jumping to 390 by 29th June and ending down at 122 on 30th June.

Zebra, ELO TouchSystems and Lexmark directed price rises by manufacturer while Cisco, SonicWall Inc., and Xerox topped the price reductions list.

Total daily price increases started at 20,500 and dropped to 8,147 from 2nd – 4th June. Highlights for the month include rising to 18,151 on 5th June, falling to 3,067 on 9th - 11th June and jumping to 36,556 on 14th June before hitting a low of 28 on 20th June. They ended the month down at 7,880 on 30thJun.

Daily price decreases started steady, rising from 12,513 to 13,472 from 2nd – 4th June. A leap to 30,819 then followed, where it stayed high until falling to 2,143 on 13th June. More increases and decreases followed, before ending strongly at 29,605 on Jun 30.

Stock up started at 8,876, dropped to 4,499 from Jun 2-4 and then held steady for another week. Highlights include dropping to 488 by June 20, hitting 11,279 on Jun 22, falling to 1,384 on June 28, jumping to 9,342 on June 29 and ending down at 4,172.

Stock down rose from 13,068 to 17,196 on June 2-4, fell back to 13,622 on Jun 5 and then sat relatively stable until a drop to 1,239 on Jun 20. A jump to 20,261 on Jun 21 was followed by another fall, which continued until ending the month down at 12,015.

New Products June 2017

 

Prices and Stock Movements June 2017

 

 



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