July 2019

Welcome to this month's IT Market Alert from KnowledgeBus. This alert is designed to deliver some key market knowledge viewed during June 2019 that should help you get more from your IT procurement going forwards.

 

Executive Summary

  • Smartphone production volumes are down
  • Global semiconductor revenue continues to fall
  • Enterprise storage revenue is down despite large capacity growth

60,509

The largest number of price increases happened by June 3rd, with 60,509 .

Jump to Monthly Stats

June was another negative month for the IT channel. Smartphone, tablet and PC shipments were down along with smartphone production volumes, enterprise storage and semiconductor revenues. In positive news, gaming PCs and monitors were forecast to grow, wearables posted major shipment growth, and 4K TV panels were set to grow and dominate the market for the foreseeable future.

 

Exchange Rate

It was a strong month for the euro against the GBP in June. Starting at 0.8834 and rising to 0.8872 by Jun 4, after a minor dip the euro climbed to 0.8909 by Jun 11, only to drop to 0.8893 by Jun 15, jumping to 0.8937 by Jun 18, falling to 0.8888 by Jun 20 and then rising steadily to peak at 0.8963 before ending the month at 0.8948.

British Pound (GBP) per 1 Euro (EUR)

It was similar result against the USD, starting at 1.1168, rising to 1.1329 by Jun 8, dropping to 1.1205 by Jun 15, and hitting a high of 1.1388 by Jun 24 before ending the month at 1.1366.

US Dollar (USD) per 1 Euro (EUR)

Euro (EUR) per 1 British Pound (GBP)

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

According to Reuters, the eurozone economy slowed again in May with PMI coming in at 47.7, down from 47.9 in April, and then dropping to 47.6 in June. Meanwhile, France 24 said the eurozone’s inflation stayed at 1.2% in June, the same as May. Xinhua news said GDP will grow 0.3% in Q2. FXStreet said May recorded its lowest unemployment rate since July 2008 at 7.5%, and Express.co.uk said business confidence fell to its lowest level since August 2016.

Price Changes and News Through June 2019

 

Phones and Tablets

Smartphone shipments to the EMEA region dropped 3.3% YoY in Q1 to 83.7m units, with retail sale value down far more at just over 10%, IDC reported. Samsung topped the vendor list with 15.7m units and 29.47% market share, ahead of Huawei, Apple, Xiaomi and HMD.

According to TrendForce, global smartphone demand has dropped with volume production set to fall 5-7% YoY to 1.4bn units in 2019.

IDC expected shipments of slate tablets to drop 4.4% YoY from 113.9m units in 2019 to 95.1m units by 2023.

Traditional PCs

Global PC shipments including desktop, notebooks and tablets, will drop 3% YoY in 2019 to 392.5m units, IDC reported, further predicting shipments to drop at 1.6% YoY to 367.7m units.

The analyst firm also noted that global gaming computers (desktop and notebook) dropped 6.2% YoY to 7.5m units in Q1. Looking ahead, gaming desktops are forecast to grow 3.2% from 15.4m units in 2019 to 17.5m by 2023, with gaming notebooks set to rise 8.8% YoY from 19.4m units in 2019 to 27.2m units in 2023.

Premium Ultramobiles & Wearables

According to IDC, European wearable shipments grew 118.5% YoY to 10m units in Q1, with earware (up 298% YoY) accounting for 40.1% of all shipments, ahead of watches (35.6%) and wrist bands (22.9%).

By vendor, Apple led the market with 3.4m units and 33.8% market share, ahead of Samsung (1.59m and 15.8%), Xiaomi (0.87m and 8.6%), Fitbit (0.83m and 8.3%) and Garmin (0.64m and 6.4%).

In another report, IDC forecast wearable shipments to reach 222.9m units for  2019 and grow 7.9% YoY to 302.3m units by 2023. Smartwatches will reach 91.8m and 41.2% market share, while ear-worn devices will sell 72m units and account for 32.3% market share.

Processors, MEMs, Semiconductors

According to IDC, global AR and VR headsets will grow 54.1% YoY in 2019 to 8.9m units. This trend will continue at 66.7% YoY to 68.8m units by 2023

Processors, MEMs, Semiconductors

Global semiconductor revenue dropped 14.6% YoY and 0.4% on the month in April with $32.1bn, the SIA reported. Looking ahead, global sales are expected to drop 12.1% YoY for 2019 and a further 5.4% YoY in 2020. By region, only Japan (+2.5%) and China (+1.8%) posted positive MoM results in April, with Europe (-1.2%), the Americas (-3%) and Asia Pacific/All Others (-2%) negative. YoY all posted major negative results, with Europe -8%, China -10.9%, Japan -10.9% and the Americas down 29.5%.

Memory

According to IDC, global shipments of AI processes will grow 170% YoY to reach 340.1m units in 2019, and continue at 64.9% YoY to 1.5bn units by 2023.

A 13-minute power outage at Toshiba mid-June will see an increase in 2D NAND prices and decline in 3D NAND Q3 contract prices, TrendForce said.

Storage

Global enterprise storage systems revenue dropped 0.6% YoY in Q1 to $13.4bn, despite total capacity shipments posting 14.1% YoY growth to 114.2 exabytes, IDC reported. By vendor, Dell led the market with $2.96bn and 22.2% of the market, ahead of HP, NetApp, Hitachi and Lenovo.
 
According to IDC, Western Europe storage enjoyed a 2.2% YoY rise in value in Q1.

Displays

Global smartphone display shipments dropped 20% QoQ and 9% YoY in Q1 to 409m units, IHS reported, noting the US-China trade war as a major contributing factor.

According to IDC, global gaming monitor shipments will reach 6.8m units in 2019 and grow at 12.1% YoY to 10.7m units by 2023.

ABI Research said 4K flat panel TVs will dominate the market in the foreseeable future with shipments set to grow 14% YoY to 233m by 2024.

Meanwhile, 30”+ desktop monitor sales have driven a 12% YoY growth in Western Europe’s desktop monitor, Context reported.

Printers

Printer rivals HP and Xerox have inked a partnership deal whereby HP will now supply Xerox with entry-level A4 and A3 devices, CRN reported.

 

Monthly Stats

New products started at 25, jumped to 46 on Jun 3, dropped to a low of 1 on Jun 4, recovered, fell, hit a high of 237 on Jun 18, fell, and ended the month down at 12.

HP once again topped both price increase and price reduction by manufacturer.

Total price increase started at 12,263, jumped to a high of 60,509 on Jun 3, fell to a low of 4,257 on Jun 7-9, recovered, fell to 11,112 on June 14-16 and dropping to 8,148 by Jun 17 before jumping to 53,333 on Jun 18, falling, and slowly rising to sit at 22,471 from Jun 28-30.

Price decreases started 13,215 and steadily rose 27,424 by Jun 7-9 before a quick jump to a high of 42,275 on Jun 10, only to drop to 10,707 by Jun 14-16, recover, and hit 26,978 on Jun 21-23, before dropping to a low of 5,786 on Jun 28-30.

Stock up highlights include starting at 4,102, jumping to a high of 7,700 on Jun 5, steadily dropping to a low of 2,383 on Jun 14-16, recovering and seeing the month out up at 5,089.

Stock down highlights included starting 13,173, jumping to a high of 19,468 on Jun 3 and dropping to a low of 10,200 on Jun 19 before ending the month slightly down at 12,947 from Jun 28-30.

New Products June 2019

Prices and Stock Movements June 2019