1. GfK TechTalk GfK TEMAX report
could be the enormous hype and publicity about
» We will see most growth for the this year’s new product releases. Consumers and
IT market in Q2 this year, as brands businesses appear to be holding out for the best
Innovation and
launch new flagship devices in the tablets and office hardware and software: Apple
wake of the mobile and electronic iPad 2, the RIM Playbook, multiple cloud services
hyper-connectivity
such as RIM’s cloud computing, and advanced
shows and, even more importantly,
mobile management solutions for example, are all,
after Apple have released their
we are told, “on their way”. Pre-releases, rumours
newest offering «
are driving Tech
and leaked online documents all build expectation
amongst consumers and businesses alike, whilst
On the one hand, it appears impossible to avoid promoting a “don’t spend now, when you can
sector growth
news releases and articles about the thriving tablet purchase something more efficient soon” mentality.
market, whilst on the other, we are seeing an
If this is true, it is therefore likely that we will see
overwhelming increase in consumerisation and
most growth for the IT market in Q2 this year, as
business models for secure and efficient network
brands launch new flagship devices in the wake of
ecosystems (something which GfK TechTalk will
the mobile and electronic shows and, even more
be monitoring). On top of the ever-prevalent
importantly, after Apple have released their newest
replacement cycles, are calls for hardware and
offering).
software products that enable IT teams to improve
their firms’ productivity and security. Business IT Mid-range smartphones leading growth in the
teams must therefore develop secure network Telecom sector
infrastructures to support a more connected,
mobile society and employees with a range of “Highly efficient” and “Multifunctional” were
personal and work phones, balancing multiple words used to describe growth in the MDA and
Anna Parkinson devices, networks and multiple operating systems. Office Consumables markets in the TEMAX report,
but they might as well have been referring to
As highlighted in Q2, the concepts of ‘mobility’ the vast range of smartphone devices attracting
and ‘connectivity’ continue to be key in helping the consumers throughout Europe. This goes to show
IT market in particular to flourish. The products and the homogeneous nature of the elements driving
services driving technology sector growth, in such growth.
The Western European technology sector continues to grow, according to the
areas as online remote access, collaboration tools,
latest GfK Retail and Technology TEMAX report, which showed Q4 year on year storage solutions, network infrastructure and cloud There was some decline in Q4 for the TC market
growth of 0.2%. This equates to 2.1% growth for 2010, driven by innovation in computing, have connectivity and mobility at the (-1%), but it is important to remember that
IT connectivity and Smartphone sales. heart of them. there was significant growth in the smartphone
market over the year [1]. Over 1/3 of TC sales
Tablets prove interesting; not only have they volume is generated by smartphones, with all
Looking back to establish future trends Innovation in IT connectivity and devices established themselves as a new segment in the European countries showing a trending towards
market, they also fit the bill of being good all- these devices. Any decline will be more as a
Rapid innovation in the technology sector has Back in Q3 we saw year-on-year increase of +10% rounders. People consider them for work, play and result of pricing changes within the smartphone
continued to drive consumers and businesses to for the IT market, driven by faster replacement communication, with GfK data showing that the market, rather than sales volume: while they
adopt devices that enable increasingly mobile and cycles in the B2B market and by consumer demand majority of tablet current and prospective owners started as high-end premium devices, the share of
connected access to their favourite content and for netbooks, tablets, notebooks and peripherals. view accessing news websites, work documents smartphones has continued to increase in the mid-
services. In addition, the overwhelming growth in Although the growth was slightly slower in Q4 and emails, listening to music and making phone tier price classes (between 100 and 200 Euros)
the smartphone market has resulted in year-on-year 2010, it’s still an impressive +7.3% overall, and and video calls as important criteria for buying
growth in the Telecommunications (TC) market. especially so in Sweden, Germany and Austria, a tablet. The new generation of tablets will only As with the IT market, we may see a seasonality
The growth trends established at the beginning all of which enjoyed double-digit growth rates. continue to create additional demand and sales trend where companies appear to hold back until
of the year continue to strengthen, and influence And, if anything, talk of these two driving forces volume, particularly as they become more prevalent Q2 to release ‘flapship’ devices. Growth rates
businesses and consumers to invest in the latest (replacement cycles and new device consumer in the enterprise space. may therefore pick up again later this year, after
technology. demand) will only continue to grow over the a slower Q4, as people hold out for the more
coming months: So, if these two drivers continue to grow, why have innovative devices to come.
we seen some decline from Q3? One explanation

2. A more stabilised 2010 after recent lack of Still popular among the techies, but yet to be
need for innovative Consumer Electronic convinced, due to price and unwillingness among
products the general population to wear the glasses, is
3D TV. However, if the technology improves, it
Within the IT and TC markets, consumers might be possible for external events, such as the
seemingly need device-dependent incentives to Olympics and other major sporting events, to push
purchase products (e.g. screen size was the driving growth in this market. Broadcasting of this year’s
force behind smartphone growth in Q3 and touch- Wimbledon in 3D in cinemas is already rumoured
screens in Q4.) The CE market, however, appears to [2] …it might just be possible.
depend more heavily on external pushes, as shown
by the decline (-5.3%) in Q4, compared to the For 2011, it is likely that these markets will
small -0.6% decline in comparison for the whole continue to flourish. GfK Techtalk is already excited
year. The first half of the year, saw a large increase by the advancement in products in the IT, TC
in flat TV sales as a result of the World Cup and, and CE market. The IT market in particular will
to a certain extent, the transition from analogue continue to perform well, due to the consumer
to digital TV. Without such external forces, we see and business tablet and enterprise solutions
minimal growth throughout the rest of the year. markets, and smartphones are likely to keep the
TC market going for the foreseeable future. We’re
And it’s certainly not from a lack of innovation: also expecting the CE market to see growth again,
just look at the improved flat TVs, larger screens not least because of the huge growth of gaming
and upgraded technology out there, such as web software [3]
access and 3D. In all other technology markets, it
seems that products that show innovation, higher
quality, efficiency and multifunctionality will drive
market growth, whereas, in the CE market, brands Sources:
need to convince consumers of the necessity of
For more information of GfK TEMAX data, which
purchasing products with upgraded technology.
also covers other technology goods, such as Major
This may come in several forms in the coming
Domestic Appliances (+1%), Office Equipment and
year. One way is the expansion of TV equipment
consumables (+0.7%), and Photography (-1.8%), click
in the home (will TVs in the kitchen, sitting room
here http://www.gfkrt.com/gfktemax.
and bedroom become a standard?), another is the
need for peripheral products which match the high 1) http://www.itpro.co.uk/628369/smartphone-
quality visuals of those recently invested in flat TVs. market-boasts-epic-growth
This section of the CE market is already starting to
flourish and products come in the form of sound 2) http://www.digital2disc.com/2011/03/07/sony-to-
sources (internet TV, audio streaming), accessories deliver-wimbledon-3d-ace/
(loudspeakers, headphones and Home cinema
equipment) and highly advanced sound solutions 3) http://www.bbc.co.uk/news/business-12697975
for the living room, such as Soundbars, which have
developed well in past months.