October 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

  • Smartphone production up 4.8% YoY
  • Western Europe storage revenue falls
  • Global TV panel shipments back on the up

46,826

The largest number of price increases happened on September 18, with 46,826 rises in a single day.

Jump to Monthly Stats

There were a lot of positive this month despite the euro falling hard against both the GBP and USD. Smartphone and TV panel shipments were on track for YoY growth, wearables and AR/VR continued their global rise, semiconductor revenue reached new heights, memory supply was set to balance out demand, the gaming industry is helped drive monitor sales, and printers sat steady.

 

Exchange Rate

It was all negative for the euro against the GBP this month. Starting at 0.9182 and after a quick dip and rise to 0.9190 by Sep 04, the euro fell hard. Hitting 0.8787 by Sep 16, a quick rise was followed by another fall, before the euro ended the month at 0.8815.


British Pound (GBP) per 1 Euro (EUR)

 

It was more of a mixed month against the USD. After a fall from 1.1887 to 1.1861 on Sep 2, the euro then rose to a high of 1.2045 by Sep 8. A drop to 1.1892 on Sep 14 was followed by a steady rise and a harsh fall, hitting 1.1756 on Sep 27 before bouncing back to 1.1813 by Sep 30.

US Dollar (USD) per 1 Euro (EUR)

 

 

According to The Guardian, the eurozone’s annual growth was up to 2.3%, unemployment remaining at its lowest level since 2009 and factory production up 3.2% YoY. The BBC echoed this, noting manufacturers had their best month since 2011 with the PMI rising from 55.7 in August to 56.7. The report also said the ECB raised its economy growth forecast to 2.2%, the fastest in 10 years.

Euro (EUR) per 1 British Pound (GBP)

 

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

Price Changes

 

Price Changes and News Throughout September, 2017

Phones and Tablets

Global smartphone production will reach 1.4bn units for 2017 up 4.8% YoY, TrendForce reported. In celebration of its 10th year, Apple is expected to enjoy an annual 5.8% YoY growth to 227.5m iPhone units.

In other news, IHS said the iPhone 8 Plus is the most expensive iPhone ever made, costing $288.08 per unit, up $17.78 on last year’s 7 Plus.

 

Traditional PCs

According to IDC, Australia has bucked the global trend. Traditional PC shipments grew in Q2, up 3.3% YoY in to 0.981m units.

Meanwhile, Microsoft will reportedly exit the Surface hardware business in 2019, Canalys Channels Forum CEO Steve Braziers suggesting software and not hardware will remain Microsoft’s focus

 

Premium Ultramobiles/Wearables

IDC forecasted that global wearable shipments will reach 121.7m units in 2017, up 16.6% YoY. It also envisaged further growth to 229.5m units in 2021. According to ABI Research, enterprise wearable shipments will reach 118m in 2022, up 25% from 38m in 2017.

AR/VR headset shipments will reach 13.7m in 2017 and grow to 81.2m by 2021, IDC reported. VR will account for 90% of all shipments until 2019, where AR will grow rapidly and account for $30bn in revenue by 2021. In a Q2 report, IDC IDC said headset shipments reached 2.13m units in Q2, up 25.5% YoY, with Samsung taking the top spot.

 

Processors, MEMs, Semiconductors

The Semiconductor Industry Association reported global sales reached $33.6bn in July, up 24% YoY and 3.1% on the month. All regions achieved both YoY and monthly growth, with Europe alone enjoying 18.9% YoY and 1.2% growth on the month.

Meanwhile, IHS said the semiconductor enjoyed its best Q2 growth in three years, up 6.1% on Q1 with $101.4bn in revenue. Intel took top spot with 3.3% growth to $14.46bn and 14.4% market share, in front of Samsung in close second with $14.38bn and 14.2% market share. SK Hynix, Micron Technology and Broadcom rounded out the top five.

 

Memory

DRAM supply is set to increase just 19.6% in 2018 as demand rises to 20.6%, TrendForce, reported. Manufacturers are already near capacity and awaiting new plants to open and begin mass production in 2019 to catch up to demand.

According to TrendForce, demand has consecutively exceeded supply of NAND flash since Q3 2016, and will continue to, until balancing out in 2018 when supply reaches 42.9% growth while demand sits at 37.7%. Further, 3D NAND is expected to account for over 70% of all global NAND manufactured in 2018.

In other news, Toshiba has sold its memory business to a Japanese private equity-backed consortium for $18bn. The buyer is said to focus solely on catching up to Samsung in the 3D Nand industry.

 

Storage

Global enterprise storage revenue grew 2.9% YoY to $10.8bn in Q2 on the back of capacity shipments up 16.5% YoY to 65.3 exabytes, IDC reported. HP ($2.17bn & 20.1% market share) led Dell, NetApp, IBM and Hitachi for revenue and market share, with all but NetApp recording YoY revenue losses.

Western Europe’s external storage market revenue fell just 1% YoY in Q2 as capacity grew 7.6% to 2,366.2 petabytes. According to the IDC report, Dell topped the vendor list for the entire EMEA region in Q2 with $409.58m (-20.36%) and 26.85% of the market, followed by HP, NetApp, IBM and Hitachi.

 

Displays

Global TV shipments grew 8.2% on the month but fell 2.5% YoY in August to 23.02m units, TrendForce reported. Innolux topped the vendor list with 28.9% growth on the month to 3.9m units.

eSports is driving global gaming monitor sales, Context reported, with sales up 175% YoY in Q2, a positive note despite desktop monitors falling 3% YoY. Full HD monitors accounted for two-thirds of all shipments in Q2, with Dell (19%) enjoying top spot.

IDC found Q2 global monitor shipments fell 6.4% YoY to 28.5m units. The reported suggest Q2 2018 will fall a further 2.2% YoY to 27.8m units. Annually, 2017 will reach 117m units with the market expected to fall 2% each year to 112m units by 2020.

In other news, IHS said TFT display shipments will grow 1% YoY in 2017 to 688m units and total area growth up 6% to 180m square metres, while OLED displayed smartphone shipments will grow from 28% in 2017 to 33% in 2018, TrendForce reported.

Printers

Printer shipments to the EMEA region enjoyed 4% YoY growth in Q2 with Western Europe accounting for 70% of all shipments, Context reported.

In another report, Context found global 3D printer shipments jumped 38% YoY in 1H, driven by the personal/desktop market (39%) as industrial fell 6%. 200,509 units, (85% of all shipments) fell within the sub-$2500 market. Looking forward, Context said the global 3D printer market will be worth $5.8bn in 2017, up 15% YoY, and will grow to $17bn by 2021.

 

Monthly Stats

 

Monthly Statistics

New products started at 489, slipped to 463 on Sep 2-3, dropped to 52 on Sep 4, recovered and then jumped to a monthly high of 4,790 on Sep 7. After a dramatic fall to 101 on Sep 08 and 28 by Sep 12, new products jumped to 3,621 on Sep 15. This trend continued for the rest of the month, eventually ending on a monthly a low of 20.

Zebra Technologies topped both price increase and price reduction by manufacturer.

Total price increases per day started sat at 16,105 from Sep 1-3, fell to 2,482 on Sep 4, recovered, fell and jumped to 20,340 by Sep 11 before hitting a monthly low of 700 on Sep 13. Prices slowly rose before jumping to 31,826 on Sep 20, falling, and ending the month down from where it started at 12,770.

Price decreases per day started at 22,319, fell to 1679 on Sep 4, jumped to 36,226 on Sep 7 and sat above 28,000 until dropping from 40,798 to 3917 on Sep 13, bouncing back to 40,503 on Sep 14 and hitting a high of 46,826 on Sep 18. Sitting steady, prices eventually fell to a low of 1668 on Sep 26 before recovering to sit at 16,215 on Sep 30.

Stock up started and finished at a similar point this month. Sep highlights include sitting at 4,618 on Sep 1-3, hitting a low of 192 on Sep 6, sitting steady at 6,627 on Sep 15-17 before peaking at 8,889 on Sep 18, and ending the month at 4,389.

Stock down sat at 16,184 from Sep 1-3, fell, recovered, sat steady, hit a high of 20,571 on Sep 14 and stayed above 10,000 for the rest of month, minus a dip to 9,435 on Sep 26 before settling at 13,947 on Sep 29-30.

New Products September 2017

 

Prices and Stock Movements September 2017