Link: The Server Market Booms, And It Could Last For A While

“Datacenters certainly came to the fourth quarter of last year hungry, and according to the latest statistics from IDC, they consumed 2.84 million units of iron, a 10.8 percent increase over the prior year’s final quarter. Thanks to IBM’s big bump up with System z14 mainframe sales and to a general trend of buying beefier boxes for hefty machine learning, analytics, and HPC workloads (admittedly but a slice of the server shipment pie), revenues for those servers shipped rose by 26.4 percent to $20.65 billion. This is the first time ever that server sales broke through the $20 billion barrier, and after IDC finishes restating its ODM server revenues for the first quarter of 2017, it is likely that it will report revised sales for all of 2017 to kiss $67 billion. Over that same period, Intel’s Data Center Group will account for $19.1 billion in sales and $8.4 billion in operating profit, just to give you a sense of the chip giant’s slice of the pie. If you are generous and assume that there is a 10 percent operating margin on servers – and that is because big iron NUMA machines and mainframes bring up the class average bigtime even as the ODMs do maybe 5 points of profit at best – that is a potential operating profit for the server industry of around $7 billion. If that is close to reality, then Intel will have around 27 percent of server revenues passed back to it by its OEM and ODM partners as a cost for compoents. If you add Intel’s profit to the server industry’s aggregate profit, and then add in the profit for memory and flash makers, Intel could account for 40 percent of the profit and as much as 50 percent back when memory and flash cost half as much as it did a year ago.”
Original source: The Server Market Booms, And It Could Last For A While

Link: How smart speakers stole the show from smartphones

“In the first nine months of 2017, 17.1m smart speakers shipped worldwide, according to Canalys’s data, but a further 16.1m were shipped in the last quarter of the year driven by Christmas present sales…. The trend towards smart speakers becoming mainstream is expected to continue. Canalys is forecasting 70% year-on-year growth with shipments reaching over 56m units this year.”
Link to original

~9m/yr. VR unit shipments in context


Simon Sharwood pulls together some shipment numbers to put VR headset shipments in context.

The tl;dr on annual shipments: 9.2m VR headsets, vs. 135.6m wearbles, vs. ~1.5bn smartphones.

Details

VR headsets have a runrate of, like, 9.2m units:

Virtual reality headsets are moving at a rate of 2.3 million a quarter

But, fast growing:

IDC says shipments are up 77.4 per cent year over year.

Meanwhile, wearables are at something like “33.9 million shipments a month,” like a runrate of 135.6m units.

Meanwhile, taking from this year’s Internet Trends report (sourced from Morgan Stanley), smart phone shipments are under 1.5bn, though slowing in growth:


And then smartphone shipments from IDC (probably where Morgan got those numbers):

For the full year [of 2016], the worldwide smartphone market saw a total of 1.47 billion units shipped, marking the highest year of shipments on record, yet up only 2.3% from the 1.44 billion units shipped in 2015.

Source: Virtual reality headsets even less popular than wearable devices

Five years of declining PC sales

For the year, Gartner estimated shipments at 269.717 million, down 6.2 per cent year-on-year, with each of the major manufacturers except Dell reporting falling sales.

Gartner says high-end PCs are doing well, but of course, are a smaller market:

There have been innovative form factors, like 2-in-1s and thin and light notebooks, as well as technology improvements, such as longer battery life. This high end of the market has grown fast, led by engaged PC users who put high priority on PCs. However, the market driven by PC enthusiasts is not big enough to drive overall market growth.

There may less volume, but it’d be nice to know how that effects profits in the notoriously slim margin PC business.

Meanwhile, on overall, global IT spend:

Companies are due to splash $3.5tr (£2.87tr) on IT this year, globally, although that is down from its previous projection of three per cent.

See some more commentary of that forecast.

Link

Random Chromebooks shipments estimate

I’m guessing from the article it’s from Gartner…or maybe this ABI Research reference:

Google’s Chromebooks – manufactured by Samsung, Lenovo, Hewlett-Packard and Acer – topped 2.1 million unit sales in 2013 and are expected to climb to 11 million annually by 2019.

This surge matches the interest we saw in a joint study with Spiceworks. While the overall shipments are low relative to the behemoths of iOS/Android and Windows, there’s growth in Chromebook land.

Random Chromebooks shipments estimate