Beancounters at Context have worked out that the channel has already started to show signs of bouncing back, with the four-week rolling average for year-on-year revenue sales growth climbing from to 4.6 percent in week 17, outperforming 2019 figures for the same period of -1.9 percent.The analyst house highlighted that resilience in the channel but is expecting Q2 numbers to come in with a 4.1 percent decline after a robust first quarter had delivered 4.8 percent increases.
Certain product areas continue to provide the channel with revenue growth opportunities, including: AV systems, mobile and desktop computing, software, and licences.
Recent weeks have also seen demand for warranties and service, ehealth devices, and games consoles. Context is warning that the biggest losers in the second quarter will be telecoms, printing hardware and consumables, displays and infrastructure and security.
Context global managing director Adam Simon, said: “With most of Europe still furloughed, B2B projects have been put on hold, while consumer sentiment is dropping fast as unemployment bites and savings are depleted. However, there are some bright spots. Mobile computing and software will account for nearly €7 billion in revenue in Q2 and computing components are making a turnaround as supply issues ease.”
With the economic problems having been sparked by coronavirus rather than the financial crisis of 2008 he thinks any recession will be short.
