• IT Supply Chain Insights - October 2019

Welcome to this months IT Supply Chain Insights. This monthly newsletter keeps you up to date with market trends and IT channel news giving you the knowledge you need to buy IT for less.

 

Executive Summary

 

40,043

The largest number of price increases happened on the 3rd Septmeber, with 40,043.Jump to Monthly Stats

September was a mixed month for the IT channel in September. Smartphone and tablet shipments were down, PCs shipments were expected to decline over the coming years, semiconductor sales are at a 10-year low and the euro fell against both currencies. On the plus side, gaming PCs are set to for long-term growth, wearables and hearables are on the up, AMOLED display revenue is growing, and large screen shipments enjoyed a buoyant period.

Exchange Rate

 

It wasn’t great news for the euro against GBP in September. Starting at 0.9030, it was all downhill after an initial high of 0.9089 on Sept 3. The euro eventually hit a low of 0.8818 by Sept 20. After holding steady and rising slightly to 0.8899 on Sep 28-29, the euro ended the month down at 0.8876.

It was a similar result against the USD. The euro started at 1.0986 and dropped to 0.10952 on Sept 3 before steadily rising to a high of 1.1077 by Sept 13, only to then fall and end the month back down at 1.0916.

According to MarketWatch, the Eurozone’s inflation dropped to 0.9% in September, while PMI dropped to 45.6 – its lowest in almost seven years.

Price Changes and News Through October 2019

Phones and Tablets

IDC expects global smartphone shipments to fall 2.2% YoY in 2019 but grow 1.1% YoY to 1.48bn by 2023. Android will enjoy an 87% market share in 2019, growing to 87.4% or 1.29bn units by 2023, while Apple’s share is expected to drop 2.2% to 186.6m units.

In tablet news, IDC reported shipments to Western Europe down 6.6% YoY in Q2.

Traditional PCs

According to Gartner, global personal computing shipments including PCs, ultramobiles and mobile phones, will drop 3.7% YoY in 2019 from 2.22bn units to 2.13bn, before rebounding slightly to 2.15bn in 2020. Traditional PCs will drop steadily from 195.3m units in 2018 to 169.2m in 2021.

Global PC gaming shipments including desktops, notebooks and monitors, grew 16.5% YoY to 10.4m units in Q2, IDC said. Looking ahead, the report forecasts 9.6% YoY growth across the gaming market 2019. Further ahead, it predicts 6.5% YoY market growth to reach 55.2m units by 2023, with notebooks claiming 45.3% of the market ahead of desktops (36.4%) and monitors (18.3%).

According to Context, Chromebook shipments to Western Europe in July and August grew 27% YoY to claim 11% of the notebook market, up from 8% in 2018.

Premium Ultramobiles & Wearables

According to IDC, global shipments of wrist-worn wearables grew 28.8% YoY in Q2 to 34.2m units. Xiaomi overtook Apple for top honours with 42.2% YoY growth to 5.9m units and 17.3% of the market, while Apple, in second place, grew 7% YoY to 5.1m units and 14.8% of the market. Huawei, Fitbit and Samsung rounded out the top five vendors.

In another report, IDC said global wearable shipments grew 85.2% in Q2 to 67.7m units, with hearables the fastest growing segment, claiming 46.9% of the market in Q2 (up from 24.8% in Q2 2018). By vendor, Apple topped the market for hearables with 15.9m units shipped in Q2, up 218.2% YoY, ahead of Samsung in second with 3.3m units. Xiaomi, Bose, and GN Group grounded out the top five.

Meanwhile, TrendForce has forecast global smartwatch shipments to grow 28.6% YoY from 62.63m in 2019 to 80.55m units in 2020. Apple is set to own the market with 34m units and 21.8% market share.

Processors, MEMs, Semiconductors

According to The SIA, global semiconductor revenue fell 15.9% YoY in August, but grew 2.5% on the month to $34.2bn.

TrendForce says H2 will be stronger for the semiconductor component market with Q3 revenue to grow 13% QoQ.

Meanwhile, IHS says 2019 semiconductor sales have performed the worst in 10 years, with 1H sales down 13.9% YoY to $203.bn.

Memory

TrendForce says despite ongoing contract negotiations, DRAM prices will hold steady in September following a stable August. The report said Samsung, SK Hynix, and Micron will drop expenditure by 10% YoY in 2020 and drop output growth to 12.5% to help increase prices.

Storage

Global enterprise external OEM storage revenue fell 0.8% YoY in Q2 to $6.3bn, IDC said. Dell topped the market with $1.89bn in revenue, despite dropping 1.8% YoY, while HP in second place enjoyed 13.5% YoY growth to $740.4m.

In other news, TrendForce noted branded SSDs grew 50% YoY in 2018 to 81m units, with Kingston topping the market at 25% ahead of ADATA, Tigdo, Galaxy, and Teclast.

Displays

According to IHS, global AMOLED TV display revenue will grow 8.5% YoY from $2.9bn in 2019 to $7.5bn in 2025, where it is expected to account for 20.6% of the market.

In other news, Context said large interactive display sales to Western Europe grew 30% YoY in July 2019.

Printers

Market Expert24 says construction is a new focal point for the 3D printing market with the report suggesting the industry will grow at 25% YoY to 2025 to a value of $40bn.

Monthly Stats

New products started at 11 and jumped to a high of 387 on Sept 3, fell to 163 on Sept 4, recovered to sit at 313 on Sept 6-8, fell to 3 on Sept 10 and stayed low until another jump to 309 on Sept 18. Then, they fell again and stayed low to end the month at 13.

HP once again topped the price increase and price reduction by manufacturer lists.

Total price increase highlights included starting the month at 12,405 and rising to 40,043 on Sept 3 before dropping to 7,172 on Sept 6-8, recovering and falling, and after another similar pattern, jumping from 9,513 on Sept 27-29 to end on a high of 54,187.

Price decreases started at 16,873 and steadily rose to 28,917 by Sept 9, dropped to 10,097 on Sept 12, jumped to 35,197 on Sept 16 and hit a low of 9,101 on Sept 19, all before ending the month down at 12,085.

Stock up highlights included rising from 3,450 on Sept 1 to 6,628 on Sept 3, dropping to 2,737 on Sept 4, hitting 10,329 on Sept 13-15, and ending in the month up at 4,746.

Stock down started 13,630, rose to a high of 19,263 on Sept 2 and hit a low of 12,067 on Sept 4, where it then sat steadily between13,000 and 16,000 before ending the month up slightly at 14,112.

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