November 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 October2018 that should help you get more from your IT procurement going forwards.

 

Executive Summary

  • Smartphone shipments are down for fourth consecutive quarter
  • Semiconductor sales growth continue to break records
  • TV panel shipments are back on the up

32,537

The largest number of price increases happened by October 29th, with 32,537.

Jump to Monthly Stats

It was quite a subdued month for the IT channel in October. Only a few reports came out with Q3 results, notably smartphones, tablets and PCs reporting negative growth, while wearables, memory semiconductor and LCD panels enjoyed growth.

 

Exchange Rate

After sitting at 0.8887 until Oct 3, the euro then fell against the GBP, first to 0.8778 by Oct 6 and 0.8737 by Oct 10. A small rise to 0.8808 on Oct 15 was followed by a quick dip before a series of strong increases, eventually reaching 0.8907 by Oct 30 and ending the month at 0.8891.

British Pound (GBP) per 1 Euro (EUR)

Against the USD, the euro started at 1.1590, fell to 1.1479 by Oct 9, rose to 1.1575 by Oct 12 and following a small drop, 1.1580 by Oct 16. The euro then fell hard, hitting 1.1479 on Oct 19, 1.1377 by Oct 26 and ending the month down at 1.1331.

US Dollar (USD) per 1 Euro (EUR)

Euro (EUR) per 1 British Pound (GBP)

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

According to the New York Times, the eurozone's economic growth fell to its slowest in four years in Q3, up just 0.2% on the quarter. Meanwhile, the Washington Post said October's consumer prices rose at its fastest since December 2012, with inflation rising from 2.1% in September to 2.2%. Unemployment remained at 8.1%.

Price Changes and News Through October 2018

 

Phones and Tablets

Xiaomi reached their goal of 100m shipments in October, two months ahead of schedule. Boasting 43% YoY growth, the South China Morning Post added Xiaomi is now the fourth largest global smartphone vendor. Meanwhile Huawei reached 100m in July and are expected to record 200m shipments by the end of the year.

In other news, OnePlus are working on becoming the first 5G smartphones in Europe, Hypertext reported, noting early 2019 as the launch date.

Meanwhile, IDC said global smartphones reached 355.2m shipments in Q3, down 6% YoY and the fourth consecutive QoQ drop. By vendor, Samsung led the market with 72.2m units shipped and 20.3% of the market, despite dropping 13.4% YoY. Huawei (+32.9% to 52m and 14.6%), Apple (+0.5% to 46.9m and 13.2%), Xiaomi (+21.2% to 34.3m and 9.7%) and OPPO (-2.1% 29.9m and 8.4%) rounded out the top five.

In tablet news, the global market fell 8.6% YoY in Q3 to 36.4m units, IDC reported. Apple led the market with 9.7m units and 26.6% of the market, down 6.1%. Samsung, Amazon, Huawei and Lenovo rounded out of the top five.

Traditional PCs

Global personal computing shipments for Q3 fell 0.9% YoY to 67.38m units, IDC reported. By vendor, Lenovo led the market with 5.8% YoY growth to 16.15m units and 24% market share. HP followed with just +0.3% YoY growth to 15.35m units and 22.8% market share, followed by Dell, Acer and Apple rounding out the top five.

Gartner on the other hand said Q3 global PC shipments grew 0.1% YoY to 67.2m units, with Lenovo, HP, Dell, Apple and ACER holding the top five vendors.

Premium Ultramobiles & Wearables

The global wearable fitness technology market will grow 13.62% YoY to a value of $6.6bn in 2018, Digital Journal predicted, further noting expected growth to reach $12.44bn by 2022.

Processors, MEMs, Semiconductors

The SIA said global semiconductor sales grew 4.1% QoQ and 13.8% YoY to $122.7bn in Q3. Further, September sales were up 2% on the month and 13.8% YoY. Regionally, China (26.3%), the Americas (15.1%) and Europe (8.8%) led YoY sales for September, and Americas (6%), China (1.8%) and Europe (1.2%) led on monthly growth.

Memory

According to TrendForce, average DRAM and NAND Flash contract prices grew 1-2% QoQ in Q3 but will drop 10-15% in Q4. Average DRAM prices are expected to drop 15-20% in 2019 on the back of weak server DRAM while the average NAND Flash prices are expected to drop 25-30% in 2019 due to increased focus on 3D NAND production.

Displays

LCD monitor shipments will grow 1.5% YoY to 126m units in 2018, ending seven years of annual declines, TrendForce reported. By vendor, Dell led the market with 7.5% YoY to 19.6% market share, ahead of HP (+10.6% YoY to 13.8% market share), Philips (-1.2% YoY to 13.1% share), Lenovo (-0.6% to 9.6%) and LG (-5.6% YoY to 8.7%).

Meanwhile, IHS forecast global TV shipments to grow 3.6% YoY in 2018 and a further 1.4% YoY in 2019 to 226m units, of which over half will be UHD.

 

Monthly Stats

New Products started at 107, dropped to 17, rose to 111 and fell back down to 8 on Oct 5-8, recovered, jumped to 1,603 by Oct 11 and dropped back to 12 from Oct 12-14. Staying low, new products then jumped to a high of 3,183 of Oct 19 – 21, before falling to a low of 7 by Oct 24 and seeing out the month at 11.

Total price increases steadily fell from 23,906 on Oct 1 to 6,210 by Oct 9 and a monthly low of 5,321 by Oct 12 – 14. Jumping up to 30,316 the next day, prices up fell, recovered hit a high of 46,640 on Oct 22, dropped back to 18,512 by Oct 26-29 before ending the month at 21,742.

Price decreases per day highlights included starting at 24,689, rising, dropping, hitting a low of 6,727 on Oct 18, hitting a high of 32,537 by Oct 29 and ended the month down at 11,523.

Stock up highlights include starting at 6,176, dropping to 3,760 by Oct 5-7, recovered, jumped from 3,611 on Oct 19-21 to a high of 28,976 on Oct 22 only to fall to a low of 1,630 on Oct 23, before ending the month at 5,713.

Stock down started at 11,826, jumped to 16,123 on Oct 2, held steady until jumping from 11,261 on Oct 19-21 to 15,204 on Oct 22 and 30, 499 by Oct 23, fell, hit a low of 10,917 by Oct 29 and recovered to sit at 12,871.

New Products October 2018

Prices and Stock Movements October 2018