• IT Supply Chain Insights - June 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

 

41,546

The largest number of price increases happened on May 15, with 41,546 rises in a single day.

Jump to Monthly Stats
  • Euro relish’s in strong growth against both currencies.
  • Notebooks relish in shipment increases.
  • Mobile DRAM registers revenue deduction.

It was a mixed month for the IT channel in May. Smartphone and notebook shipments increased while tablets and PCs dipped. Worldwide DRAM revenues rose even though mobile DRAM revenue is decreasing YoY, LCD panel shipments have increased YoY but jumped on the quarter, while printer sales in Western Europe registered yet another quarterly drop.

 

Exchange Rate

 

After starting at 0.8437 and hovering until falling to the monthly low of 0.8401 on 10th May, the euro ended the month strongly in contrast to GBP. Increasing gradually until climaxing at 0.8725 on 27th – 28th May, an instant dip saw the euro conclude the month up at 0.8723.


British Pound (GBP) per 1 Euro (EUR)

 

There was a similar outcome in contrast to the USD. Starting at 1.0900 and rising to 1.0994 on 6th -7th May simply to drop to a low of 1.0869 by 11th May, the euro then rose strongly, eventually reaching 1.1229 by 23rd May. A small drop and recovery saw the euro conclude the month at 1.1201.

US Dollar (USD) per 1 Euro (EUR)

 

 

Business and consumer confidence took a small decline this month with the Financial Times and RT reporting the index down 0.5 points from April's record post-financial crisis high of 109.7. XM reported, consumer prices decreased from 0.5% to 1.4% this month alongside core inflation dropping 0.2% to 1%. On the other hand, the PMI remained positive, sitting at the 6-year high of 56.8 for 2nd month in a row, stated the Star.

In other news, Reuters said the USD took a dip in late-May on the tail end of political uncertainty and rising oil prices.

Euro (EUR) per 1 British Pound (GBP)

 

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

 

 

Price Changes

 

Price Changes and News Throughout May, 2017

Phones and Tablets

IHS reported, worldwide smartphone shipments increased 5.61% YoY to 338.9m units in the first quarter. Samsung topped the list 79.1m units (+0.1%), followed closely by Apple in 2nd with 50.8m units (-0.8%) and Huawei in 3rd with 34.6m units, up 21.7%. Oppo in 4th (+67.3% to 28.1m units) and Vivo in 5th (+56.3% to 22.5m units) were the biggest movers, as LG, Xiaomi, Lenovo, ZTE and TCL Alcatel finished in the top ten with mixed results.

Gartner said, worldwide smartphone sales increased 9.1% YoY in Q1 to 380m units, further noting the top 5 vendors ranked in the exact same order as above. By OS, Android gained further ground with increases in unit sales (+34.4m to 327.1m units) and market share (+2% to 86.1%). While Apple sales grew 0.3m units, it lost 1.1% share to sit at 13.7%.

IDC expects the smartphone market (by shipment volume) to recuperate in 2017 with 3% YoY increase to 1.52b units, and another 4.5% YoY in 2018.

IDC said that worldwide tablet shipments dropped 8.5% YoY to 36.2m units in Q1, led by Apple's 13th quarterly YoY shipment in a row decline to 8.9m units.

IDC reported the tablet market fell 1.7% YoY to 7.1m units for the first quarter in Western Europe. The positive news however, is that detachables grew 5.8% YoY, the commercial segment grew 5.4% YoY and Android slate tablets had their first YoY increase since 2014 with 4.8%. Samsung claimed top position for shipments to the region with 1.89m units, up 17.9% YoY, while Apple in 2nd place declined 11.5% YoY to 1.54m units.

TrendForce reported worldwide quarter 1 tablet shipments dropped 34.5% on the quarter and 9.3% YoY to conclude at 31.95m units. The best 5 vendors all recorded substantial declines on the quarter, with Apple topping the list at 8.92m units (-31.8%). Samsung sat in 2nd with 6.1m units (-23.5%), while Huawei (-31.1%) edged Lenovo (-43.8%) by 0.5m to hold 3rd position with 2.1m units. Amazon rounded out the top 5 with 2m units shipped (-42.9%).

Traditional PCs

Shipments of personal computing devices are predicted by IDC to fall 1.4% to 405.2m units by 2021. Over a similar period, notebooks will grow 0.9% and detachable tablets up 16.4%, while desktops will drop 3% and slate tablets will decline 6.9%.

In Western Europe, while PC volume sales fell 2.4% in Q1 YoY, the region's revenues increased 8.3%, stated Context. In the UK, volume fell 9.8% as revenue rose 14.6%.

Worldwide notebook shipments enjoyed a 6.1% YoY growth in Q1 to 37.81m units, reported Trendforce. Although down 15.6% on Q1, in the future TrendForce expects notebooks relish in a 1 - 3% YoY growth in Q2.

Premium Ultramobiles/Wearables

Google's Daydream smartphone VR will establish itself a strong competitor to Samsung's Gear VR in H2, states IHS. Predicting Daydream View headset sales to increase from 120,000 in 2016 to 2.23m in 2017. Nevertheless, Samsung will remain market leader, despite an expected 9.6% YoY drop to 4.12m in consumer sales.

Processors, MEMs, Semiconductors

Gartner reported, worldwide semiconductor revenue for 2016 grew 2.6% YoY to reach $343.5b. Intel led the market with +4.6% to $54.09b and 15.7% market share, holding off Samsung in 2nd with +5.9% to $40.1b and 11.7% market share. Qualcomm came 3rd with $15.4b (-4.1%) and 4.5% of the market.

In other news, datacentres currently comprise 35% of the demand for server processors manufactured today, with the rest coming from enterprises, states TrendForce. Datacentres will buy over 50% of server processors by 2020.

Memory

TrendForce reported, revenue for the worldwide mobile DRAM market fell 1.7% to $5.41b in Q1 despite contract prices increasing. Samsung dominated the segment with 58.4% market share (-2.9%) and $3.1b in revenue (-6.3%).

Worldwide DRAM revenue throughout the board rose 13.4% in Q1, noting the increase coming on tail end of severe supply shortages driving average PC DRAM contract prices up over 30%.

The mobile industry accelerate demand for LPDDR4 and LPDDR4X memory has been caused by advances in smartphone technologies and DRAM manufacturing processes. Samsung could be the established leader following its Q4 release of 18nm LPDDr4x products, while competitor SK Hynix and its 21nm LPDDR4X sits just behind.

Storage

Intel led the enterprise-grade SSD market for the quarter with over 40% of shipments on tail end of lowering 3D-NAND prices and focus on increased exposure of how well they complement their server processors. Not without competition, Samsung took 2nd place with 25% of the market while Western Digital, following its takeover of SanDisk, sat in third with 20%. Enterprise-grade SSDs constructed just 10% of most SSDs shipped in the quarter.

Displays

TrendForce said worldwide 1st quarter LCD TV panel shipments fell 31% in Q1 and 8.3% YoY to 44.05m units. Blaming poor shipments to China whilst the leading cause, it's not looking any brighter ahead either, predicting 2017 going to just 219m units.

Samsung ranked first for shipments with 10.1m units, down 35% on the quarter, accompanied by LG with 6.4m units, down 12%, and TCL with 2.8m units, down 23%.

In other news, Future Source said 4K UHD TV sales will increase 38% YoY in 2017 to take into account over 75% of worldwide TV panel sales, ABI Research has forecast HDR TV panel shipments to overtake 4K panel on tail end of 41% growth to 245m units by 2022, while AMOLED TV panel shipments will reach 10m units by 2023, up 42% from 2017, said IHS.

Printers

Western Europe's printer and multifunction market fell 0.9% to 5m units shipped in Q1 YoY IDC said, with the negative trend continuing since Q2 2015. The UK market was on par with the highest region, led by the inkjet (-0.8%) and laser (-1.2%) markets.

On tail end of an expected 39% YoY shipment growth in 2017, Context predicts global 3D printer shipments will grow 42% and revenue increase 33% over the following five years.

Meanwhile, China's first 3D printer designed commercial airline took flight in May 2017, leaving IDC to raise questions concerning what's next for the Chinese 3D printer market.

 

Monthly Stats

 

Monthly Statistics

New services started at 1,096 and dropped to 33 on 2nd May, before slowly increasing to 502 by 8th May. Falling again before recovering to sit at 1,237 by 15th May, this trend continued with highlights for the month including peaking at 2,048 on 25th May, dropping to 13 on 30th May and ending the month at 116.

Honeywell Bull, Dell and Getac led price increases by manufacturer while HP, APC and Canon topped the price reductions list.

Daily price increases started at 10,375, dropped to 6,238, rose to 21,774 and fell again to 5,951 all by 4th May. After jumping to 24,507 on 5th -7th May and falling to a low of 1,459 on 10th May, the rest of the month continued increase and decrease, including dropping to 1,713 on 30th May and ending the month on a high at 43,289.

Daily price decreases dropped from a high off 39,648 to 2,579 on 2nd May, jumped to 21,580 on 5th -7th May and following another rise to 35,714 on 9th May, fell to 4,298 on 10th May. This continued until dropping to a low of 197 on 30th May and rising to 12,388 on 31st May.

Stock up started at 6,275, dropped to 1,144 on May 2, jumped to 10,240 on 5th – 7th May, and then dropped 4,736 on 8th May, where it hovered for the rest of the month minus a drop to 73 on 30th May. Stock up ended the month up at 7,031.

Stock down fell immediacy from 15,865 to 6,888 on 2nd May, jumped to 14,558 on 3rd May, dipped to sit at 12,810 on 5th – 7th May and then rose to 21,341 on 12th-14th May. Despite minor fluctuations and a drop to 1,044 on May 30, stock down stayed above 10,000 for the remainder of the month, sitting at 16,803 on 31st May.

New Products May 2017

 

Prices and Stock Movements May 2017

 

 



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