Tag: IDC

IDC notes strong storage growth

seagate-hddIDC’s worldwide storage tracker has noted that the personal and entry level storage market has shot up 73.4 percent year on year – reaching 20.2 million units shipped in Q1 2013, with shipment value growing 54.1 percent at $1.8 billion.

In the first quarter, there was both strong shipment and revenue growth. The market has finally recovered from the floods in Thailand several years ago which led to a worldwide shortage in hard disks. Thanks to cheaper average selling prices, better products and more user awareness about the need for storage and back up, the market is picking up nicely.

Personal storage makes up 99.1 percent of shipped PELS units and 89.8 percent of values for the quarter. Dual bay product shipments were up 43.6 percent year on year, but single bay devices are overwhelmingly still the most popular choice at 96.8 percent of all units shipped. Higher bay devices saw growth at 38.2 percent year on year.

3.5″ devices lost some market share to the 2.5″ form factor, declining 2.6 percentage points for the year. 3.5″ and 2.5″ devices did both see shipments increase, at 56 and 79.7 percent respectively.

Consumers are flocking to higher capacity storage, generally. 2TB devices made up 49.9 percent of the 3.5″ personal storage market, while 1TB devices held 50.6 percent market share for 2.5″ devices. 4TB devices had the most market share in the entry level segment at 28.3 percent of units shipped.

USB is still the dominant interface, with an increase of 76.4 percent units shipped. Ethernet grew 68.8 percent. Thunderbolt grew plenty at 5102.7 percent – but with a tiny base.

 

Disties stick up for Windows 8

Windows-8A recent report laying a fair chunk of blame on Windows 8 for the demise of PC sales has been queried by distributors.

Speaking with ChannelEye the sources have said it was unfair to lay the blame just on Microsoft and Windows 8, pointing out other factors such as Apple kit and the ongoing economic crisis.

Their comments come as IDC published its latest Worldwide Quarterly PC Tracker, where it pointed  the finger at Windows 8 for disrupting the market in tough trading conditions.

It found that shipments totaled 76.3 million units in the first quarter of 2013, a decline of 13.9 percent compared to the same quarter in 2012.

The Windows 8 launch was blamed partly for the decline. Bob O’Donnell, IDC Programme  Vice President, Clients and Displays said it not only failed to provide a positive boost to the PC market, but had also slowed down the market as a result of the “radical changes” to the UI. This included the absence of the Start button, plus the costs associated with touch had made PCs a less attractive alternative to dedicated tablets and other competitive devices.

However, disties have stuck up for the company.

One told ChannelEye: “I don’t think it’s fair to put all the blame on Microsoft for disrupting the market, PC sales were flagging long before it bought out Windows 8 to the forefront. If you really want someone to blame then look towards Apple, which has totally changed the landscape with its fancy products.

“It’s tablets, not PC innovation that’s disrupted the pace of PC life.”

Another pointed to the economic climate, saying the recession has a huge part in the slow growth and decline of PC sales as consumers opt for laptops that can be used by everyone in their family.

“Businesses are also cutting down on IT spend, usually opting to repair or reuse their current kit,” the distie said.

However, there were a few choice words for Microsoft’s OS.

“Windows 8 has a small part to play in the way it has disrupted the landscape, offering people touchscreen products and making older, less feature-based PCs seem less glam,” the distie said. “Maybe people are waiting for other operating systems to come out mimicking this, hoping that competition will drive down the prices and get them the bargain they are looking for.”

Windows 8 drags down PC sales

Windows-8The first quarter of 2013 was the worst for PC sales since 1994, IDC said.

In its Worldwide Quarterly PC Tracker, the company pointed the finger at Windows 8 disrupting the market amongst tough trading conditions, reporting that shipments totalled 76.3 million units in the first quarter of 2013, a decline of 13.9 percent compared to the same quarter in 2012.

The dismal figure was also even worse than the forecast decline of  percent 7.7 percent IDC had predicted, with the company adding the extent of the year-on-year contraction marked the worst quarter since it began tracking the PC market quarterly in 1994.

The results also marked the fourth consecutive quarter of year-on-year shipment declines.

Despite some mild improvement in the economic environment and some new PC models offering Windows 8, PC shipments were down significantly across all regions compared to a year ago.

IDC said fading Mini Notebook shipments had also taken a big chunk out of the low-end market while tablets and smartphones continued to divert consumer spending.

And it seems innovation has also hindered rather than helped the PC industry with IDC pointing out that efforts to offer touch capabilities and ultraslim systems have been hampered by traditional barriers of price and component supply, as well as a weak reception for Windows 8.

It added that the PC industry was struggling to identify innovations that made PCs stand out from other products and encourage people to buy.

The Windows 8 launch was blamed partly for the huge decline with Bob O’Donnell, IDC Programme  Vice President, Clients and Displays claiming it  not only failed to provide a positive boost to the PC market, but had also slowed down the market .

He said the “radical changes” to the UI including the absence of the Start button, plus the costs associated with touch had made PCs a less attractive alternative to dedicated tablets and other competitive devices.

“Microsoft will have to make some very tough decisions moving forward if it wants to help reinvigorate the PC market,” he warned.

And other vendors have also been blamed with the restructuring and reorganisation efforts of HP and Dell claimed to have hampered the market.

In fact it seems only Lenovo has come out smelling of roses, with IDC claiming it continued to “execute on a solid “attack” strategy”,

It said to keep up with the rat race, vendors had to revisit their organisational structures and “go to market strategies” – whatever that means, as well as their supply chain, distribution, and product portfolios in the face of shrinking demand and looming consolidation.

And regionally there wasn’t better news. Across the pond, the United States contracting 12.7 percent year on year, with a drop of -18.3 percent for the first quarter of 2013 compared to the fourth quarter of 2012 and quarterly shipments reached their lowest level since the first quarter of 2006.

In Blighty and the EMEA region, the news remained bleak with IDC claiming that the area
posted a stronger double digit decline than anticipated in the first quarter of 2013.

Results fell short of expectations in the consumer segment as softness in demand persisted amid a continued shift to tablets and budget pressures. Meanwhile, the market response to Windows 8 and touch-enabled devices remains slow, leading to cautious “sell-in” from most vendors.

Japan fared a little bit better, with PC shipments in line with expectations in the first quarter. IDC said this was down to some economic improvement, which was helping to support commercial replacement demand ahead of the scheduled end of support for Windows XP next year.

However, consumer shipments remained very weak.

And Japan’s friends in the Asia/Pacific region didn’t have much to celebrate about with PC  shipments declining  sharply, dropping a record 12.7 percent.

IDC also pointed out that this was the first time the region had experienced a double digit decline. Although much of the earlier Windows 7 stock had cleared, a lukewarm reception toward Windows 8 hampered new shipments.

China’s inactivity contributed heavily to the decline, as public sector spending continued to be constrained.

HP remained the top vendor, but posted a substantial double digit decline in shipments after an aggressive fourth quarter kept growth flat during the holidays. HP’s worldwide shipments fell more than 23 percent year on year in the first quarter of 2013, with significant declines across all regions, as internal restructuring continued to affect commercial sales. Although HP maintained its leadership position in the United States, the company saw US shipments fall -22.9 percent from a year ago.

Lenovo remained second in global shipments and nearly closed the gap with HP, while Dell saw shipment decline by 10 percent globally and 14 percent in the United States. The vendor continued to face tough competition and struggled with customer uncertainty about the direction of its restructuring.

Apple fared better than the overall US market, but still saw shipments decline as its own PCs also face competition from iPads.

Surface tablet sales fall short, resemble Zune

surface-rtOh dear. It looks like the sceptics were right, Microsoft’s Surface tablets are lemons. Bloomberg is reporting that Microsoft has sold about 400,000 Surface Pro tablets since their debut last month. In addition, it only managed to sell a little over a million Surface RT tablets.

Microsoft reportedly ordered three million Surface RT tablets last year, but sales never picked up and Redmond was forced to scale back the order. 

The lacklustre figures come as no surprise. Earlier this year it emerged that the RT faced high return rates and very low sell-through, with shipments totalling just 900,000 units in the first quarter of sales. The Surface Pro did not fare any better. It got relatively negative reviews and since it is quite a bit pricier than the RT, consumers don’t seem keen to make the leap of faith.

JMP Securities analyst Alex Gauna told Bloomberg that Microsoft has failed to prove that Windows has a place in a new world dominated by touchscreens.

“It’s pretty clear that things were bad entering the year, and at least for the moment they’re getting worse,” he said. “The path to a successful Surface, in the same way that they were successful with Xbox, is not very clear to me right now.”

Apple still commands a 50+ share of the tablet market, although it is projected to slip under 50 percent later this year. Analysts put Apple’s iPad shipments in Q4 at 22.9 million units, which dwarfs every single competitor. However, Apple is losing share to Android, not Windows.

IDC reckons that the share of Windows RT tablets will stay below 3 percent through 2017, while Windows 8 could end up on 7.4 percent of tablets, in 2017 of course. In other words, Windows tablets are going nowhere, fast.

External storage up despite PC downturn

hdd-hugeAlthough PC sales fell off a cliff last year, makers of external disk storage seem to have had a rather good year. According to IDC’s latest disk storage report, revenue increased 4.7 percent in 2012, with a 2.3 percent year-on-year increase in Q4.

Worldwide sales totalled $24.7 billion last year, and total disk capacity shipped during the year surpassed 20 exabytes, up 27 per cent over 2011.

“FICON attached array sales and network attached storage (NAS) both helped drive the factory revenue increase during the quarter as companies invested in storage required to support mainframe environments and to deal with the continued growth in unstructured data,” said Eric Sheppard, IDC storage research director.

The open networked disk storage market grew 2.6 percent year-on-year in Q4 to hi $5.7 billion in revenues. EMC maintained its lead with a 30.7 percent revenue share in Q4, trailed by IBM and NetApp with 15 per cent and 11.6 percent respectively. HP and Hitachi tied in fourth position with market shares of 9.3 and 8.8 percent respectively. However, HP and Hitachi were the only players in the top five to lose share in Q4 2012.

In the total worldwide disk storage systems market EMC reigned supreme with a 24 percent share, followed by IBM and HP, in a statistical tie for second spot with 16.2 and 16 percent respectively. Dell and Netapp ranked fourth and fifth.

Smartphones will outpace feature phones in 2013

nexus4-ceSmartphones have become so affordable and readily available in all markets that they are finally expected to outsell feature phones this year. It is not a “nobody expects the Spanish Inquisition” sort of thing, since smartphone shipments have gone from strength to strength for years.

IDC’s latest report forecasts that 918.6 million smartphones will be shipped this year, accounting for 50.1 percent of all mobile phone shipments.

The research outfit says it based its predictions on falling prices of smartphones and increased consumer interest, which probably has something to do with the fact that smartphones are getting dirt cheap. With 4G services being rolled out in major markets, IDC expects smartphone shipments to hit 1.5 billion units by 2017.

China is expected to be the biggest market in 2013, as IDC estimates it will gobble up 301.2 million smartphones. The US ranks second with 137.5 million, way ahead of the UK and Japan, tied in third place with 35 million, reports The Next Web

The BRIC march continues in fifth and sixth spot, which will go to Brazil and India respectively. However, by 2017 India will rank third and consume 155.6 million smartphones. Brazil will see plenty of growth as well, going from 28.9 million to 66.3 million units by 2017.

In other words, smartphone makers will have to start designing more devices with emerging markets in mind, which means we might see a bit more emphasis on value moving forward.

Samsung eats into Apple’s tablets

Samsung HQ in CaliforniaResearch firm IDC has released a set of figures showing that Apple’s dominance in the tablet market has started to slide.

But Samsung effectively doubled its market share in the last quarter of 2012, according to IDC. The Galaxy tablets sold nearly eight million units representing a market share of 2.2 million.

Apple, on the other hand, has seen its market share slip from 51.7 percent to 43.6 percent, although it sold more units.

IDC said that the last quarter of 2012 saw worldwide sales of tablets rise to 52.5 million units, a rise of 75 percent.

It’s not a direct correlation, but PC shipments fell in the last quarter of 2012. But even though Microsoft introduced the Surface tablet towards the end of last year, it only sold 900,000 units.  The price of the Surface is hurting sales, IDC believes.