September 2019

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

 

Executive Summary

  • Global shipments continue to decline
  • Western Europe PC sales enjoyed Q2 YoY growth
  • Printer shipments post negative growth

46,836

The largest number of price increases happened on September 12th, with 46,835.

Jump to Monthly Stats

The IT channel experienced more bad news this month. Q2 reports showed slipping global smartphone, tablet and printer shipments, along with falling semiconductor revenue. There was a silver lining: PC sales, notebooks and wearable shipments all enjoyed some YoY or QoQ growth.

 

Exchange Rate

The euro started strongly against the GBP, rising from 0.9118 on Aug 1 to a monthly high of 0.9308 on Aug 10. It then fell, hitting 0.9124 by Aug 17-18 and after a slight recovery, fell again to 0.9053 by Aug 25. It attempted a rebound but eventually slid to finish the month at 0.9029.

British Pound (GBP) per 1 Euro (EUR)

The euro experienced a similar month against the USD. Starting at 1.1056 on Aug 1 and rising to 1.1207 by Aug 7, it stayed high until Aug 12 where it then fell from 1.1205 to 1.1091 by Aug 16. It stayed there until Aug 25, when it jumped quickly to 1.1138, but ended the month down at 1.0985.

US Dollar (USD) per 1 Euro (EUR)

Euro (EUR) per 1 British Pound (GBP)

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

ING has dropped its eurozone GDP forecast for 2020 from 1.1% to 0.7%.

Price Changes and News Through August 2019

 

Phones and Tablets

Global smartphone sales fell 1.7% YoY in Q2 to 367.9m units, Gartner reported. Samsung topped the vendor list with 75.11m units and 20.4% of the market share, ahead of Huawei (58.05m and 15.8%), Apple (38.52m and 10.5%), Xiaomi (33.19m and 9%) and OPPO (28.11m and 7.6%). All but Apple and OPPO reported YoY growth.

Meanwhile, global smartphone shipments are expected to fall 2.5% YoY in 2019 to 1.51bn units, but will recover and grow to 1.56bn units in 2020, Gartner said. This is due in the part to the rise of 5G. 15m smartphones using that technology will ship by the end of this year.

According to IDC, global smartphone assembly shipment volumes grew 11.9% QoQ to 332.6m units in Q2. Samsung remained the top vendor, ahead of Foxconn, vivo, OPPO and Haqin. TrendForce on the other hand suggested Q2 smartphone production volumes dropped 2.4% despite demand growing 10.5% QoQ to 344m units.

In tablet news, global shipments fell 5% YoY in Q2 to 32.2m units, IDC said. Apple topped the market with 6.1% YoY growth to 12.3m units and 38.1% of the market, ahead of Samsung, Huawei, Amazon and Lenovo.

Traditional PCs

According to Context, global PC sales grew 1.5% to 4.9m units in Q2, with Eurozone sales even stronger at +4% YoY. Business demand saw desktop sales up 10.4% and notebooks up 3.1%, while consumer sales dropped 3.9% YoY, noting desktops declined 10.5% and notebooks 6.1%

Global notebook shipments in Q2 were up 12.1% QoQ to 41.5m units and are expected to rise 3.6% QoQ in Q3 to 43m units, TrendForce said. HP topped the market with 10.25m units, up 11% QoQ but down 4.8% YoY, ahead of Lenovo, Dell, Acer, and Apple.

Premium Ultramobiles & Wearables

According to IDC, global shipments of wearables devices in Q2 grew 85.2% YoY to 67.7m units. Hearables were the fastest growing segment, making up 46.9% of all shipments, up from 24.8% in Q2 2018. By vendor, Apple topped the market with +218.2% YoY growth to 15.9m units and 50.2% market share, ahead of Samsung with 3.3m units and 10.2% of the market. Xiaomi, Bose and GN Group rounding out the top five.

Processors, MEMs, Semiconductors

Intel topped the global semiconductor list in Q2 with a revenue of $15.44bn, down on the last four quarters but enough to beat Samsung in second, which was up 6.6% on the quarter but down over $6bn YoY, IHS reported.

According to ABI Research, shipments of global secure embedded semiconductors will pass 4bn shipments by 2023.

Meanwhile, the SIA said global semiconductor sales rose 0.3% QoQ but fell 16.8% YoY to $98.2bn.

Memory

In a number of reports this month, TrendForce said global DRAM revenue for 2018 grew 41% YoY to $16.56bn, Q2 2019 NAND Flash consumption grew 15% QoQ yet revenue remained unchanged at $10.78bn, and Q2 2019 DRAM revenue fell 9.1% QoQ to $14.84bn.

Storage

Global enterprise external OEM storage systems revenue declined 0.8% YoY in Q2 to $6.32bn, IDC reported. Dell topped the list with -1.8% YoY to $1.89bn and 29.9% market share, ahead of HPE (+13.5% to $0.74bn and 11.7%), NetApp (-17.8% to $0.68bn and 10.8%), IBM (-22.7% to $0.44bn and 7.1%) and Hitachi (+8.6% to $0.43bn and 6.9%).

Displays

With 1.8m units expected to ship in 2019, the global flexible, foldable, and rollable display market will start to gain significant traction in 2020, shipping 8m units. It will grow at a CAGR of 72% to 228m units by 2028, ABI Research said.

Printer

Global printer shipments fell 5.6% YoY to 22.2m units in Q2, IDC said. Despite dropping 3.3% YoY, HP topped the list with 9.45m units and 42.6% of the market, double that of Canon in second with -10.8% YoY to 4.17m units and 18.8%. Epson, Brother, and Kyocera Group, all down YoY, rounded out the top five.

In another report, IDC said Q2 printer shipments to Western Europe dropped 6.1% YoY to 4.13m units with market value down 1.1% YoY to $2.3bn, taking total shipments for 1H 2019 to 8.54m units and a value of $4.6bn. The report also noted the UK was one of the worst performers, down 18.9% YoY, equal to 150,000 units, on Q2 2018.

 

Monthly Stats

New products started at 15, jumped to 133 on Aug 2-4, dropped to 9 on Aug 5, and stayed low until another jump to 130 on Aug 15. They hit a low of 0 on Aug 27, rose to the monthly high of 138 on Aug 29, and finished the month down at 11.

HP topped the price increase and price reduction by manufacturer lists.

Total price increase started the month at 35,656, rising to a high of 46,950 on Aug 5, dropping to 9,674 by Aug 8 and hitting 46,835 on Aug 12. They hit a low of 5,082 on Aug 16-18 and ended the month down at 12,405.

Price decreases started at 5,282 and jumped to 12,304 on Aug 2-4 and 27,919 by Aug 8, before falling to 9,231 on Aug 9-11 and 3,646 by Aug 15. Prices then rose, hit a high of 35,550 by Aug 24-26, and despite a fall, ended the month up at 16,873.

Stock increases rose from 3,221 on Aug 1 to 8,845 by Aug 9-11, hitting a high of 14,093 on Aug 23-25 and a low of 466 on Aug 27, before ending back where they started at 3,450 on Aug 30-31.

Stock down started from a high of 17,276 on Aug 1 and fell, hitting 14,549 on Aug 2-4 and 7,542 by Aug 13 before recovering, falling, dropping to a low of 5,484 on Aug 27 and ending the month at 13,630.

New Products August 2019

Prices and Stock Movements August 2019