IT distributor revenues to further decline
November 10, 2023
Slow consumer device sales continue to hold back IT distributor revenues in Q3 2023, according to IDC’s North America Monthly Distribution Tracker, powered by GTDC.
IT distributor revenue declined 9.6% year-over-year to $19.6 billion in the third quarter of 2023, according to the IDC North America Distribution Tracker (NADT). The decline continues to be led by reduced demand for devices like PCs as consumers respond to higher inflation and retreat from the buying patterns of the previous two years. Meanwhile, Network Infrastructure maintained the growth trajectory exhibited in recent quarters.
“We continue to see resilient enterprise spending in the networking, software, and services categories as businesses prioritize digital transformation,” said Ruth Flynn, Research Vice President, IDC Tracker & Data Products. “However, devices remain soft as consumer electronics, peripherals, audio/video, and PC categories declined. Even enterprise infrastructure hardware saw declines as companies carefully prioritize their investments.”
Network Infrastructure revenue was $2.45 billion (€2.29 billion) in the third quarter and Ethernet Switches achieved 55.6% year-over-year growth, continuing its five-quarter growth streak. Cisco remained the category leader with double-digit growth and more than 60% of the revenue share.
Software revenue reached $3.9 billion (€3.65 billion) with a decline in year-over-year growth of 2.7%. System Infrastructure Software saw revenues grow compared to the previous quarter but experienced a 3.5% decline year-over-year to $2.1 billion (€1.97 billion). The top four companies in the System Infrastructure Software category all saw double-digit growth in the quarter, reducing the stratification among the top three. Palo Alto Networks emerged as the category leader with year-over-year growth of 15.7%, underscoring the strength of security software.
The personal computing market saw a double-digit decline in revenues for the fourth consecutive quarter in Q3. However, the decline appears to be levelling out as the $3.6 billion (€3.37 billion) in sales recorded in Q3 was relatively flat compared to Q2. Among the top PC companies, Acer was a bright spot, recording two consecutive quarters of year-over-year growth (at 6.7% and 12.5% respectively) and ending Q3 closing in on a position among the top five.
Categories : World Focus
Tags : Business Consumer Demand IDC IT Distributors Revenues Tracker
