Channel Focus: Components & Peripherals
Lots of cash for rares
They are small, but essential: peripherals and components. The demand for monitors, graphics cards and SSDs is great, but the market is currently not easy for the channel, as the results of the IT BUSINESS panel show.
Everyone needs them, and for office workers they are the daily tools of the trade: devices from the periphery or components. Because every day people stare at the monitor for hours, while you wildly hook on the keyboard and the mouse runs for several meters.
Without components and peripherals, there is no IT and the selection of products in the two areas is large: from motherboards to processors, storage media to screens. The portfolio of the ICT channel is also correspondingly versatile, as confirmed by the results of the IT BUSINESS panel.
However, when asked about the current sales drivers, the opinions of the survey participants differ. The surveyed ICT retailers and system integrators are currently experiencing the greatest demand for monitors (80%). 40 Percent of the surveyed distributors and manufacturers also see this as their third position.
No wonder. After all, the corona pandemic has not only fueled the notebook business, the associated peripherals and PC accessories have also been very popular since then. PC monitors in particular have been more in demand than ever since 2020. At first, many companies upgraded their computer technology on an ad hoc basis, but now it seems that they are continuing to invest strategically.
Supply shortages lead to price increase
Another bestseller in the channel are SSDs and hard drives. With 66 percent, they climb to the first place among the surveyed distributors and manufacturers. Although there is currently a strong demand for peripherals and components, as the IT BUSINESS panel shows, the market has been affected by supply bottlenecks for almost two years. The reasons for this include the closure of factories and ports as well as production problems.
The supply bottlenecks not only lead to displeasure among customers, but also to higher prices. The cost of SSDs and HDDs is already rising and there are signs that they could grow even more massively in the near future.
This is similar for PC screens. According to statistics from May 2022 of the Federal Statistical Office, the price index in April was at a value of 90.7 points. It has been at this level since February 2021. In December 2020, it was still at 82.7 points. The price increase in the consumer market can be roughly adapted to the business sector.
Supply bottlenecks will remain
An end to this development is not yet in sight. Rather, inflation provides for a further increase in prices. And the delivery problems are still far from being resolved. It is difficult to make accurate predictions and the forecasts fluctuate monthly. The IT BUSINESS panel participants are rather pessimistic. Only 33 percent of ICT retailers and system integrators believe that supply chains will relax in the next six months. The majority (66%) of respondents do not believe in it.