World Electronic Equipment Growth in Third Quarter ‘19
Here are preliminary 3Q’19 worldwide growth estimates for electronic equipment sales by type, based on a combination of actual 3Q’19 company financial reports and Custer Consulting Group estimates:
- 3Q’19 electronic equipment revenues grew 0.3 percent versus the same quarter in 2018 (chart 1).
- Based on the trajectory of third quarter 3/12 growth of electronic equipment (chart 2), we may have reached the bottom of the current downturn.
- Growth by sector of the electronic supply chain is given in chart 3.
Be aware that these estimates are still very preliminary. They will be refined over the month as more companies report their calendar third quarter financial results.
Source: Data analyzed by Custer Consulting Group
Global Semiconductor Sales Increase 3.4% Month-to-Month in September (Charts 4-8)
These charts (especially numbers 5, 7 & 8) also support the likelihood that we have reached the bottom of the current downturn. Here is the SIA report:
The Semiconductor Industry Association (SIA) announced that global sales for the month of September reached $35.6 billion, an increase of 3.4 percent over last month’s total and 14.6 percent less than sales from September 2018.
Worldwide, sales of semiconductors reached $106.7 billion during the third quarter of 2019, an increase of 8.2 percent over the previous quarter and 14.6 percent less than the third quarter of 2018.
“Following months of slower sales earlier in the year, the global semiconductor market rebounded somewhat in the third quarter of 2019,” said John Neuffer, SIA president and CEO.
“While sales remain well behind the record totals from last year, month-to-month sales increased for the third consecutive month in September and were up across all major product categories,” Neuffer said. “Month-to-month sales also increased across all regional markets, with China and the Americas leading the way.”
Source: www.semiconductors.org
October Purchasing Managers Indices: Mixed Results
As we wrote this column, not all countries’ October PMIs were available, but here are some key ones:
- Both the ISM and ISM Markit U.S. PMIs improved in October (chart 9), moving near or above the expansion point (PMI>50).
- Europe remains in the doldrums (charts 10 and 11); the Eurozone PMI is still well into contraction territory.
- Asia had mixed results (chart 12) although China resumed growth (Chart 13).
- Taiwan (chart 14) is at “break-even” (PMI=50), but Japan (chart 15) and South Korea (chart 16) remained in manufacturing contraction in October.
Source: www.markiteconomics.com
Gartner: Global Spending on Wearables Will Increase 27% in 2020 (Chart 17)
Worldwide end-user spending on wearable devices will total $52 billion in 2020 – an increase of 27 percent from 2019, according to the latest forecast from Gartner, Inc.
In 2019, worldwide wearable devices end-user spending is on pace to reach $41 billion.
End users will spend the most on smartwatches and smart clothing, with spending growing 34 percent and 52 percent in 2020, respectively.
“More users coming into the smartwatch segment are replacing wristbands with smartwatches,” said Ranjit Atwal, senior research director at Gartner.
“While brand leaders Apple Watch and Samsung Galaxy Watch command premium pricing in the smartwatch segment, lower-priced players such as Xiaomi and Huawei will counterbalance high-priced smartwatches with lower cost smartwatches. We expect average selling prices of smartwatches to decline 4.5 percent between 2020 and 2021,” Atwal said.
Smartwatches and ear-worn devices will take the lead in terms of shipments in 2020, with smartwatch shipments forecast to total 86 million units and ear-worn wearable shipments reaching 70 million units.
The crowded ear-worn wearable market — led by Apple (AirPods), Samsung (Galaxy Buds), Xiaomi (AirDots) and Bose (SoundSport), as well as new entrant Amazon — remains competitive.
Other competitors, such as Nuheara, Microsoft and Starkey, are offering attractive products that fuel demand such as hearing enhancements and over-the-counter hearing augmentation devices.
Several Factors Influence Rise in Wearable Device Spending
One of the biggest influencers of increasing adoption of wearables is users who are new to the wearables market. Other influences include improved sensor accuracy, advances in miniaturization and better user data protection.
Device makers will focus on smaller and smarter sensors, and those built into wearable devices will increasingly be capable of more accurate readings enabling more use cases.
Miniaturization will also greatly benefit smart garments.
Advances in miniaturization have enabled device makers to integrate sensors that can track sleep or medical conditions into wearables that are almost invisible to end users. “These discrete and nearly invisible wearables will particularly increase acceptance among reluctant end users,” said Alan Antin, senior research director at Gartner.
Gartner predicts that, by 2023, miniaturizing capabilities will advance so that one tenth of all wearables will be unobtrusive to the user.
Data security and privacy is another influencing factor in the growing number of new wearable users. Wearable device organizations and ecosystem providers will continue to invest in protecting user data. Gartner analysts expect end-user privacy will remain an influencing factor impacting adoption especially for healthcare use cases, where HIPAA in the U.S. and relevant local regulatory rules apply. GDPR in Europe and privacy regulations in other countries will also further the cause of securing data and privacy rights.
Source: www.gartner.com
Worldwide Tablet Shipments Up 1.9% in Q3’19 (Chart 18)
The worldwide tablet market returned to growth in the third quarter of 2019 with 37.6 million units shipped globally for a year-over-year increase of 1.9 percent, according to preliminary data from the International Data Corporation (IDC) Worldwide Quarterly Tablet Tracker.
Apple maintained its lead and grew 21.8 percent over last year. The introduction of a new iPad late in the quarter helped the company gain share, growing from 26.3 percent in Q3 2018 to 31.4 percent in Q3 2019. By including the Smart Connecter on its latest device, all of Apple’s iPads except the Mini now offer a detachable keyboard option. This, combined with the iPad OS, makes Apple the largest player in the detachable space and a greater threat to the traditional PC market.
Amazon.com managed to grab the second spot (usually held by Samsung) during the quarter, growing shipments 25.6 percent year-over-year. The introduction of the new Fire 7 last quarter, combined with the company’s annual Prime Day Sale, helped drive shipments. With the latest refresh of the Fire 10 and the upcoming holiday season, Amazon continues to position itself as one of the most popular tablet brands.
Samsung slipped into third place, shipping 4.6 million units in the quarter. The Tab A series continues to be incredibly popular, accounting for more than half of Samsung’s shipments, while the Tab S series has helped raise the company’s profile as a premium Android tablet vendor.
Huawei shipped 3.6 million units in Q3 ’19 for a year-over-year decline of 4.4 percent. The company has faced steady pressure from the United States, and this has led to a bit of retrenchment as the majority of the company’s shipments were in China.
Lenovo rounded out the top 5, growing its share slightly from 6.3 percent in Q3’18 to 6.7 percent in the current quarter. The company’s performance in Asia/Pacific (including Japan) along with Europe, Middle East and Africa continued to be a driver.
Source: www.pressreleasepoint.com