Macdara Wrynne, DSM Distribution MD shares his thoughts on the market.
The global market has shown signs of stabilisation following a market decline that began in October 2022. The first half of 2023 proved to be challenging across all sectors on a global scale. Major vendors experienced a significant decrease in turnover, with a decline of 30-40% observed across the board, particularly in the laptop and desktop accessories space. However, there is anticipation of a market rebound in Ireland towards the fourth quarter of 2023, as the 3-year cycle of COVID-related equipment starts to take effect.
One notable trend is the increased caution among IT resellers and end-users, resulting in longer buyer decision processes. We have observed that projects are often put on hold for several months, but we have also seen a positive trend of these projects being re-instated and successfully completed.
Clients are now more open to considering refurbished equipment, leading to a slight decline in orders for new laptops and monitors. This shift in mindset reflects a growing acceptance of refurbished kit as a viable option.
Based on our observations, we have identified several key points regarding the current market:
- Enterprise equipment, such as networking and servers, is performing well in terms of sales.
- Laptops and WFH appliances have experienced a natural decline in demand.
- Projects that were paused in the first quarter of 2023 are now materialising, indicating a positive outlook.
- Overall stock levels have improved this year, except for Cisco, which is still recovering from chip shortages and longer lead times.
- Cisco pricing has stabilised, offering more predictability and stability for customers.
- Most vendors have adjusted their pricing since the peak of the COVID period, resulting in reduced prices for items like servers and laptops.
These observations provide valuable insights into the current market landscape, allowing our clients to adapt their strategies accordingly and make informed decisions moving forward.