Market Monitor ICT USA 2017

Monitor de Mercado

  • USA
  • Electrónica / TIC

06 jun 2017

It still remains to be seen to what extent the Trump administration´s policies will impact the US market for information and communication technology.

  • High growth continues in the emerging technology segments
  • Impact of new US economic policy remains to be seen
  • A modest increase in insolvencies expected in 2017

 

 

In 2016 the US ICT market benefitted from stable economic growth and robust private consumption, which was helped by wage growth, employment gains and decreased energy prices. According to the European IT observatory EITO, ICT sales growth in the United States increased 3.2% year-on-year in 2016, with IT sales growing 4.3% and business with software services rising 9.0%.

In 2017 the US ICT market is forecast to grow further, by 3%-4%. Smartphone revenues are expected to reach USD 55.6 billion in 2017, up 2% year-on-year, with more budget models to hit shelves in 2017. That said, sales of tablets, one of the best performing products over the past few years, are expected to decrease 8% this year, to USD 16 billion, as adoption rates level off and replacement cycles slow down. Likewise, laptop and desktop revenues are expected to decrease 3% and 8%, to USD 15.6 billion and USD 3.9 billion respectively. As in 2016 the main growth driver will be emerging technologies with connectivity, including digital assistants and 3D printing, augmented/virtual reality, autonomous vehicles and medical and sports technologies. These are expected to to show double-digit growth rates.

Despite the mainly robust growth rates in many ICT segments, high competition is still leading to low pricing strategies and margin compression for distributors and retailers alike. Margins of manufacturers are impacted by the already high market penetration of mature product categories and the subsequent need for innovation. Many ICT businesses continue to rely heavily on bank facilities and external financing, resulting in leveraged balance sheets. ICT insolvencies are expected to remain stable or even to increase slightly in 2017, given high competition, many start-ups and short product cycles.

Payment terms in the ICT sector commonly range between 30 and 90 days, but in some cases can take even 120 days. When payment delays occur, they generally relate to disputes over product pricing or other issues, as opposed to liquidity concerns. Manufacturers often offer price protection or discounts on products in order to move inventory ahead of the rapid innovation of technology experienced in the market. This can lead to disputes and ultimately an increase in non-payments until the issues can be resolved.

 

 

It remains to be seen to what extent the Trump administration´s policies will impact the US market for information and communication technology. The announced tax cuts and stimulus measures could lead to increased household purchasing power and a further decrease in unemployment, boosting additional consumer spending for ICT. However, a massive restriction of the H1-B immigration visa programme for high-skilled immigrant workers could affect recruitment policies. At the same time, higher tariffs on electronic imports from Asia could hurt producers and increase sales prices, while US ICT exporters could be affected by an increase in global protectionism (especially those selling to Latin America).

 

 

Until there is more clarity about the implications of potential changes in US trade and economic policies our underlying underwriting strategy remains cautiously open, with a focus on favourable subsectors such as smartphones, tablets and health technology products along with other emerging technologies, while steering clear of unfavourable or declining subsectors like PCs. We employ a more cautious approach in certain niche segments or markets (such as consumer electronics exporters selling to South America due to the on-going economic difficulties in some countries).

When analysing buyers, the level of transparency in their products and their life cycles – including any insight into buyback arrangements for old or obsolete products – is key. With short life cycles and technology quickly becoming obsolete, it is important for us to know which end markets and subsectors are being served.         

 

 

 

 

Documentos relacionados

Disclaimer y Buró de Entidades Financieras

Este informe se presenta, con fines de información únicamente y no está pensada como una recomendación en cuanto a las transacciones particulares, inversiones o estrategias en modo alguno a cualquier lector. Los lectores deben tomar sus propias decisiones independientes, comerciales o de cualquier otro tipo, con respecto a la información proporcionada. Aunque hemos hecho todo lo posible para garantizar que la información contenida en este informe sea obtenida de fuentes confiables, Atradius no es responsable por los errores u omisiones, o por los resultados obtenidos del uso de esta información. En ningún caso Atradius, sus corporaciones o empresas relacionadas, afiliadas y subsidiarias, ni los socios, agentes o empleados, serán responsables por cualquier decisión o medida adoptada con base en la información en este informe, o por ningún daño directo, indirecto, especial, incidental o consecuente, resultante del uso de la información de las declaraciones hechas en este documento. BURÓ DE ENTIDADES FINANCIERAS ¿Qué es el Buró de Entidades Financieras? Es una herramienta de consulta y difusión con la que podrás conocer los productos que ofrecen las entidades financieras, sus comisiones y tasas, las reclamaciones de los usuarios, las prácticas no sanas en que incurren, las sanciones administrativas que les han impuesto, las cláusulas abusivas de sus contratos y otra información que resulte relevante para informarte sobre su desempeño. Con el Buró de Entidades Financieras, se logrará saber quién es quién en bancos, seguros, sociedades financieras de objeto múltiple, cajas de ahorro, afores, entre otras entidades. Con ello, podrás comparar y evaluar a las entidades financieras, sus productos y servicios y tendrás mayores elementos para elegir lo que más te convenga. Esta información te será útil para elegir un producto financiero y también para conocer y usar mejor los que ya tienes. Este Buró de Entidades Financieras, es una herramienta que puede contribuir al crecimiento económico del país, al promover la competencia entre las instituciones financieras; que impulsará la transparencia al revelar información a los usuarios sobre el desempeño de éstas y los productos que ofrecen y que va a facilitar un manejo responsable de los productos y servicios financieros al conocer a detalle sus características. Lo anterior, podrá derivar en un mayor bienestar social, porque al conjuntar en un solo espacio tan diversa información del sistema financiero, el usuario tendrá más elementos para optimizar su presupuesto, para mejorar sus finanzas personales, para utilizar correctamente los créditos que fortalecerán su economía y obtener los seguros que la protejan, entre otros aspectos. Puedes consultar la información relativa al Buró de Entidades Financieras, tanto de Atradius Seguros de Crédito. S.A., como de todo el sector asegurador en el siguiente enlace: http://www.buro.gob.mx