July 2017

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 June 2017 that should help you get more from your IT procurement going forwards.

 

Executive Summary

  • India set to overtake US for global smartphone shipments
  • Semiconductor revenue growth at seven-year high
  • TV panel shipments down in Q1 but set to enjoy large Q3 growth

36,556

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

Jump to Monthly Stats

June proved a conflicted 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 it is selling its memory business.

On the other hand, PC sale prices rose, VR headset shipments jumped, wearable revenue is set to double, DRAM contract prices rose, printers achieved growth and the euro rose against the GBP and USD.

 

Exchange Rate

The euro started out against the GBP at 0.8722, rose to 0.8748 on Jun 4 and then dropped to 0.8678 by Jun 8. A quick jump to 0.8785 on Jun 9 and again to 0.8820 by Jun 13 was followed by another fall, this time to 0.8742 by Jun 16. Continuing in a similar trend, the euro peaked at 0.8836 on Jun 28 but fell to end 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 Jun 3-4, and then gradually fell to 1.1141 by Jun 21. A slight rise to 1.1192 on Jun 26 was followed by a rapid jump to end the month on a high at 1.1423.

The narrower-than-expected UK election result had a clear effect on confidence in sterling, spiking the euro’s value against the pound. Reports this month say the eurozone economy is at a six-year high with little sign of slowing down. Both Fortune Finance and Reuters noted manufacturing PMI hit 57.4, up 0.4 points on May and the highest since April 2011. With demand and optimism growing, work has increased to 13-year highs, and unemployment numbers dropped to 9.3%, their lowest since 2009. According to the Fortune report, British numbers were much slower than the eurozone, dropping to a three-month low of 54.3 on the back of increased inflation, and GBP value steadily falling since the Brexit vote.

US Dollar (USD) per 1 Euro (EUR)

Euro (EUR) per 1 British Pound (GBP)

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

Price Changes and News Through June, 2017

 

Phones and Tablets

TrendForce said stalling global smartphone shipments for 1H 2017 has led vendors to change from the mainstream 16:9 to a full-screen 18:9 display ratio format. They are attempting to boost shipments and drive a busy end to the season.

Gartner said that global smartphone shipments will experience minimal growth over the over the next five years, starting with 2017 ending at just 5% up YoY.

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

Traditional PCs

Context reported Q2 PC sale prices rose 19% in Western Europe in the early parts of the quarter, with price increases noted in both consumer and business PC segments. The UK led the growth with at 42% for early Q2 YoY, followed by Sweden and Poland with 18% each.

IDC said that the UK personal computing market remained negative in Q2 with volume falling 10.8% YoY. This will contribute to a 6.8% fall in 2017 YoY shipments, reaching 3.2m units. In positive news, detachable/hybrid tablets are expected to jump 27.6% in 2H.

Premium Ultramobiles/Wearables

Global shipments of AR and VR headsets reached 2.28m units in Q1, IDC said. VR accounted for 98%, with two-thirds of those screenless viewers such as Samsung’s Gear and Google’s Daydream VR. Samsung claimed 21.5% market share with 489,500 units, followed by Sony (18.8% market share) and HTC (8.4% market share).

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

Global spending on IoT will grow 16.7% YoY in 2017 to $800bn, and continue to rise to $1.4tn by 2021, IDC said.

Processors, MEMs, Semiconductors

The Semiconductor Industry Association (SIA) announced global semiconductor sales reached $31.3bn for April, up 20.9% YoY and the largest single YoY growth since September 2010. It predicted that 2017 will enjoy 11.5% YoY growth, while 2018 will 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 continue throughout the rest of 2017. Looking forward, TrendForce said global Q3 DRAM prices across the market will rise 5% on Q2.

In other news, troubled Toshiba is selling off its memory business with a US-Japanese consortium the current front runner to buy. According to TrendForce, Toshiba’s memory business made $1.97bn in revenue and 16.5% of the market in Q1.

The rare and highly customized NOR flash is in growing demand on the back of AMOLED smartphones using Touch with Displace Driver Integration (TDDI). Despite the demand and 20% increase in contract prices, TrendForce said manufacturers are looking to end NOR production due to the difficulties in manufacturing and their inability to increase global production from it’s current 88,000 pieces per month.

Storage

The global 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, TrendForce said external storage revenue fell 0.8% YoY in Q1 to $1.22bn in market value. 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

IHS reported global 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 all units shipped.

Looking forward, IHS said Korean and Chinese TV makers will enjoy over 25% QoQ increase in panel demand in Q3 following Q2’s lower than expected purchasing numbers.

TrendForce reported a recent fatality 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 an already tight Q3 panel supply forecast.

TrendForce said HDR panels have infiltrated the PC market with 4K 27”+ LCD PC monitors proving a hit in the gaming world.

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

Printers

IDC said global 3D printer shipments rose 29% YoY and revenue was up 18% YoY in 2016.

Global hardcopy peripheral shipments enjoyed a 1.2% YoY growth in Q1 to 23.4m units, IDC reported. Inkjet (2.2%) and laser (1%) both enjoyed positive numbers as HP led the market 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, along with 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

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

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

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

Price decreases per day started steady, rising from 12,513 to 13,472 from Jun 2-4. A jump to 30,819 then followed, where it stayed high until falling to 2,143 on Jun 13. 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 the next 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 fall 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