August 2018

Welcome to this month's IT Market Alert from the IT Edition of KnowledgeBus. This alert is designed to deliver some key market knowledge viewed during July 2018 that should help you get more from your IT procurement going forwards.

 

Executive Summary

  • Smartphone shipments are down
  • PCs shipments achieve first growth in six years
  • LCD TV shipments down QoQ but annual growth expected

32,134

The largest number of price increases happened on July 2nd, with 32,134.

Jump to Monthly Stats

Reports this month shined a positive light on the IT channel. Although smartphone shipments were down, PCs recorded their first YoY growth in six years, VR continues to expand, DRAM sales revenue is through the roof and overall TV shipments posted YoY growth. The euro equally enjoyed growth against both GBP and USD currencies.

 

Exchange Rate

After a slow start it was all good news for euro against the GBP in July. Starting at 0.8841 and despite some minor movement, it held steady until a dip to 0.8825 was followed by a sudden rise to 0.8938 by July 20. Dropping slowly to 0.8884 by July 26, the euro began to climb again, reaching 0.8916 by July 31.

British Pound (GBP) per 1 Euro (EUR)

 

The euro was less steady against the USD, starting at 1.1680 and dropping immediately to 1.1634 before hitting a monthly high of 1.1759 on Jul 10. Dropping hard, recovering, and then bottoming out at 1.1628 on July 19, the euro eventually rose to end the month back up at 1.1709.

US Dollar (USD) per 1 Euro (EUR)

Euro (EUR) per 1 British Pound (GBP)

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

According to Marketwatch, the eurozone’s GDP fell 0.3% in Q2 on Q1, July’s inflation rose 0.1% above the ECBs target of 2.0% and June’s unemployed levels held steady at 8.3%. The Telegraph further noted the 8.3% unemployment rate is at its lowest levels since December 2008, while Reuters reported PMI for July sat at 55.1, up slightly on June’s 54.9.

Price Changes and News Through July 2018

 

Phones and Tablets

Global smartphone shipments fell 1.8% YoY in Q2 to 342m units, IDC reported. Despite dropping 10.4% YoY, Samsung topped the vendor list with 71.5m units and 20.9% market share. Huawei overtook Apple to claim second with an impressive 40.9% YoY growth in shipments to 54.2m units and 15.8% of the market. Apple (+0.7% YoY to 41.3m units & 12.1%), Xiaomi (+48.8% to 31.9m units & 9.3%) and OPPO (+5.1% to 29.4m & 8.6%) rounded out the top five vendors.

In other news, Apple’s shares hit record levels on the back of the company’s pricing policy to produce more expensive iPhones, which boosted revenue despite Q2 shipments up just 1% YoY to 41.3m units, the BBC reported.

In tablet news, Microsoft have launched a low-cost 10” Surface Go tablet to challenge the Apple iPad, while the new iPad Pro is expected to go the way of the iPhone in removing the headphone jack in an attempt to make the devices slimmer.

Traditional PCs

According to Gartner, global PC shipments grew for the first time in six years in Q2, up 1.4% YoY to 62.09m units. Lenovo topped the market with 10.5% YoY growth to 13.6m units and 21.9% market share, up just on HP in second with 13.58m units, up 6.1% YoY and 21.9% share. Dell (+9.5% to 10.45m units), Apple (+3% to 4.39m units) and Acer (+3.1% to 3.96m units) rounded out the top five.

IDC said PC shipments in Western Europe enjoyed 2.9% YoY growth on the back of notebooks up 4.2% YoY and the commercial segment up 9.2% YoY. The consumer segment however, fell 5.6% YoY.

In other news, Gartner said global personal computing devices incorporating PC, tablets and mobile phones, will grow 0.9% to 2.28bn units for 2018. In breaking down the numbers, traditional PCs are set to drop from 204m in 2017 to 195m in 2018, and continue to fall to 181m by 2020, while premium ultramobiles will rise from 58m units in 2017 to 65m in 2018 and 80m units by 2020.

Premium Ultramobiles/Wearables

TrendForce expects global VR shipments will grow 27.4% YoY in 2018 to 4.65m units.

Processors, MEMs, Semiconductors

Intel and SiTime Corp have announced they’ll team to up produce new MEMs timing solutions for Intel’s 5G Modems, Yahoo reported. Meanwhile, Qualcomm Inc. failed to purchase NXP Semiconductors after Chinese regulators refused to approve the deal, and the South Korean government announced it will invest $1.34bn into its country’s development for next-gen semiconductor technology, ZDNet said.

Memory

TrendForce, global sales revenue for the DRAM market in 2017 grew 69% YoY to reach $11.7bn. Looking ahead, TrendForce forecast global DRAM output growth to increase 4.8% in Q3, taking revenue with it to new heights.

 

Storage

According to AnandTech, Western Digital has announced it will close its HDD plant by the end of 2019 to focus on SDD production.

Displays

Global TV panel shipments rose 11% YoY in 1H 2018 to 136.89m units, TrendForce reported. BOE topped the market with 25.62m units, up 31.4% YoY, followed by LG (-4.2% YoY to 24.19m), Innolux (+2.9% to 20.83m), CSOT (+6.2% to 19.29m) and SDC (+4.7m to 19.28m).

IHS expects global TV shipments to grow 3.5% YoY to 223m in 2018, with smart TVs to account for 70% of the market, up from 64% in 2017. Meanwhile, ABI Research predicts global 4K flat panel TV shipments will increase to 102m units for the year, and account for 44% of all flat panel TVs shipped.

In other news, TrendForce said global LCD TV shipments in Q2 fell 3.8% on the quarter to 47.74m units, but still expects growth for 2018 by 2.3% YoY to 215.7m units.

Printers

According to IT-Online, global shipments of personal/desktop 3D printers declined for the first time ever in Q1, as the industrial/professional segment enjoyed its third consecutive quarterly shipment of growth over 14%.

 

Monthly Stats

New products sat low for most of the month, starting at 17, up to 31 and down to 9 by Jul 3 before jumping to a high of 3,906 on Jul 5, dropping to 1,348 on Jul 6-8 and then falling to 3 by Jul 11. Rising to 60 for Jul 13-15 and dropping to a low of 1 by Jul 18, new products stayed low, eventually resting at 5 by months end.

Honeywell Bull topped price increase while Zebra Tech topped price reductions by manufacturer.

Highlights for total price increases per day included jumping from 22,130 to a high of 32,134 on July 2, dropping to 8,564 on Jul 5, rising to 25,765 on Jul 9, sitting at 23,962 from Jul 20-22, falling to a low of 4,162 on Jul 26 and ending the month down at 7,066.

Price decreases per day jumped from 7,836 to 17,145 on Jul 2, dropped, hit a high of 27,256 on July 5, fell and sat stable above 15,000 before dropping to a low of 3,590 on Jul 20-22, recovering and ending up at 14,765 on Jul 31.

Stock up started at 3,745 and rose to 6,366 by Jul 3, lowered back to 4,121 on Jul 6-8, fell to a low of 3,650 on Jul 12 before jumping to a high of 29,299 on Jul 17, only to fall back down to between 3,900 and 6,000 before resting at 4,008 on July 31.

Stock down started at 12,780 and held steady until dropping from 14,414 on Jul 9 to a low of 10,755 on Jul 10, jumped to a high of 32,774 on Jul 18, sat back down near where it started before ending the month down slightly at 11,323.

New Products July 2018

Prices and Stock Movements July 2018