October 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 September 2018 that should help you get more from your IT procurement going forwards.

 

Executive Summary

  • Wearable market continues strong growth
  • PC DRAM prices down
  • Enterprise storage on the up

42,280

The largest number of price increases happened on September 14th - 16th, with 42,280.

Jump to Monthly Stats

It was another mixed month for the IT channel in September. Notebooks were slightly down, wearable shipments and semiconductor revenue enjoyed growth, DRAM prices and panel shipments produced mixed results while storage and monitors were expected to achieve YoY growth.

 

Exchange Rate

The euro started strong against the GBP, rising from 0.8949 on Sep 1 to 0.9005 on Sep 3 and 0.9012 on Sep 4, only to fall
hard, first to 0.8937 on Sep 8 and 0.8873 by Sep 20. A jump to 0.8978 on Sep 22 was quickly dashed, ending the month
down at 0.8900.

British Pound (GBP) per 1 Euro (EUR)

Against the USD, the euro started at 1.1599, rose slightly, fell and jumped to 1.1630 by Sep 6 before dropping back down to 1.1552 on Sep 8-9. A sharp rise to 1.1669 on Sep 15 was followed by a quick drop and jump to a high of 1.1763 on Sep 21, before falling, holding steady and then dropping hard, resting down at 1.1602 on Sep 30.

US Dollar (USD) per 1 Euro (EUR)

Euro (EUR) per 1 British Pound (GBP)

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

Eurostat said inflation rose 0.1% to 2.1% in September on August, Benzing said PMI was down to 53.2 in September, the slowest since September 2016, CBS found consumer prices in the eurozone up 1.9% YoY, and PoudSterlingLive said the euro weakened following the Italian budget.

Price Changes and News Through September 2018

 

Phones and Tablets

The new 6.5” iPhone Xs Max (model 1921) with 64gb NAND memory and retailing from $1,099 has a bill of materials cost of $390, up $20 on the 2017 iPhone X and $100 on the 5.8” iPhone X, IHS reported.

Traditional PCs

According to TrendForce, notebook shipments are expected to fall 0.2% YoY in 2019 on the back of Intel CPU shortages.

Premium Ultramobiles & Wearables

ABIResearch said smartwatches will outship activity trackers by 2020, forecasting smartwatch shipments to rise from 40m in 2018 to 108m by 2023, while activity trackers will grow from 52m to 67m over the same period.

IDC has forecast global wearable shipments will reach 122.6m units in 2018, up 6.2% YoY. Despite being the first time that wearable shipments dropped below 10% YoY growth, IDC expects more on the way, with total wearable shipments to reach 190.4m by 2022. Smart earwear (56.3% to 12.3m units) and smart clothing (+56.3% to 12.3m) are forecast to enjoy the
biggest growth.

In another report, IDC said Q2 wearable shipments grew 5.5% YoY to 27.9m units and dollar value up 8.3% YoY to $4.8bn. Apple led the market with 4.7m shipments and 17% market share, up 38.4% YoY, followed by Xiaomi (+19.8% to 4.2m and 15.1%), Fitbit (-21.7% to 2.7m & 9.5%), Huawei (+118.1% to 1.8m & 6.5%) and Garmin (+4.1% to 1.5M & 5.3%).

Processors, MEMs, Semiconductors

The SIA said global semiconductor sales grew 14.9% YoY to $40.16bn in August and 1.7% on the month, with China leading the YoY growth at 27.3% ahead of the Americas (15%), Europe (9.5%), Japan (8.4%) and Asia Pacific (4.7%). On the month, all regions were up minus Japan (0.1%) and Europe (-1.4%).

Memory

According to TrendForce, PC DRAM contract prices will drop 2% QoQ in Q4 on the back of Intel CPU shortages for notebooks. Looking ahead, TrendForce expects Q3 PC DRAM prices to be up around 2% on Q2, meanwhile the overall DRAM market is expected to drop 5% QoQ in Q4.

Storage

External storage value in the EMEA region grew 18.6% YoY in Q2, IDC reported. Western Europe alone enjoyed 20.4% in USD and 10.9% in euros. By vendor, Dell led the market with 33.19% YoY growth, $545.50m and 29.83% market share, followed by NetApp, HP, IBM and Hitachi.

In another report, IDC said global enterprise storage value grew 21.3% YoY in Q2 to $13.2bn with capacity shipments up 70.7% YoY to 111.8 exabytes. The report also said Dell led the market ahead of HP, NetApp, IBM and Hitachi.

Displays

LCD monitor shipments are expected to end a seven-year decline with 1.5% YoY growth in 2018, TrendForce predicted, noting that North America demand helped growth momentum.

Meanwhile, Q3 LCD panel prices are expected to increase due to tight supplies, IHS reported.

 

Monthly Stats

New Products started at 1,953, dropped to a 34 by Sep 5, jumped to 3,255 on Sep 7-9 and hit a high of 40,473 on Sep 10 only to fall, stay low and then fall and end the month down at 4 from Sep 28-30.

Total price increases per day started at 22,984, jumped to 30,780, fell, dropped to 6,869 on Sep 14-16, jumped to 42,280 only to fall again, hit a low of 2,941 on Sep 21-13 and recovered, only to end the month back down at 5,455.

Price decreases per day highlights include starting at 20,002, rising, dropping to a low of 4,494 by Sep 5, recovering, hitting a monthly high of 39,898 on Sep 11, dropping and recovering, only to end the month slightly down at 16,149.

Stock up dropped from 7,490 on Sep 1-2 to 5,5526 on Sep 3, recovered and sat steady, hit a high of 8,518 on Sep 17 before dropping, holding, and ending the month down at 3,702 from Sep 28-30.

Stock down highlights included dropping from 15,8520 to 11,116 by Sep 5, jumping to monthly high of 19,218 on Sep 7-9 only to fall to a low of 11,027, recovered and held steady, before ending the month sitting at 13,123.

New Products September 2018

Prices and Stock Movements September 2018