state of the k-12 market · network security solid state drives access points bto desktops bto...

Copyright 2016. The NPD Group, Inc. All Rights Reserved. This presentation is proprietary and confidential and may not be disclosed in any manner, in whole or in part, to any third party without the express written consent of NPD.

State of the K-12 Market

Industry Analyst - Channels & Enterprise Technology

Michael Diamond

August 2016

The NPD Group, Inc. | Proprietary and confidential 2

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State of the Overall B2B Market


Q&A

Key category growth areas

AGENDA


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Q&A


AGENDA

The NPD Group, Inc. | Proprietary and confidential

Total B2B Notebooks Laser Toner Switches BTO Notebooks

▼ 2.7% ▲ 1.5% ▼ 1.9% ▲ 2.8% ▲ 23.3%

$26.887 B $2.428 B $2.354 B $1.409 B $1.040 B

Desktops Hard Disk Drives X86 CPU Chips Monitors Tablets Inkjet Catridges Storage Array Adapters

▼ 12.9% ▼ 23.9% ▼ 12.2% ▲ 0.7% ▲ 8.4% ▲ 9.3% ▼ 5.6% ▼ 0.1%

$895 MM $816 MM $762 MM $697 MM $682 MM $645 MM $584 MM $496 MM

Network Security Solid State Drives Access Points BTO Desktops BTO Servers Telecom Equip 2D LCD TV LFCD

▼ 3.0% ▼ 20.8% ▲ 5.1% ▲ 37.2% ▲ 35.9% ▼ 2.2% ▲ 30.7% ▲ 36.3%

$493 MM $481 MM $437 MM $417 MM $385 MM $382 MM $350 MM $344 MM

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Y/Y Performance for Top B2B HW Categories by 2016 YTD SALES

Y/Y Growth (%) Y/Y Decline (%)

B2B Dollars – Jan to Jun 2016

Source: The NPD Group / Distributor Track and Reseller Tracking Service (overlap removed)

-15%

-10%

-5%

0%

5%

10%

15%

Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May June July Aug Sep Oct Nov Dec Jan Feb Mar Apr May June

2014 2015 2016

Do

lla

r %

Ch

an

ge Y

/Y

C h a n n e l June 2016 June 2015 June 2014

N P D : R e t a i l S a l e s -4% -1% -3%

N P D : C o m m e r c i a l R e s e l l e r S a l e s -1% 11% 3%

N P D : D i s t r i b u t o r S a l e s -5% 11% 5%

U S C e n s u s ( G o v e r n m e n t ) : T o t a l R e t a i l S a l e s e x A u t o 3% 2% 4%

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Technology Sales Across all ChannelsU.S Technology Y/Y Dollar Change versus U.S. Census Total Y/Y Dollar Change, Jan 2013 – Jun 2016

The NPD Group, Inc. | Proprietary and Confidential

Source: The NPD Group/Retail Tracking Service, Reseller Tracking Service, Distributor Track (overlap removed), and U.S. Census Bureau


4.4%

Source: The NPD Group/Distributor Track and Reseller Tracking Service

The U.S. B2B market grew from $63.3 billion in 2012 to $72.0 in 2015 or a 4.4% CAGR

U.S. B2B Market 2012 – 2015 CAGR


U.S. B2B Channel Q1 2015 vs. Q1 2016

Q1 2015 vs. Q1 2016 Revenues

The market declined from $13.2B to $12.6B or a -4% decline;

Units declined from 193k to 188k or a -2.8% decline;


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U.S. B2B Channel Q1 2015 vs. Q1 2016 – Top 10


Of the top 10 sub-categories, 7 out of 10 declined or -5% or $255 Million

Laser toner was the top sub-category and declined -5% year-over-year;

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U.S. B2B Channel Q1 2016 vs. Q2 2016


The U.S. B2B Channel grew from $12.7 billion in Q1 2016 to $14.2 billion Q2 2016 or a 11.4% QoQ growth rate;

The market added +$1.4 billion from Q1 2016 to Q2 2016

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$12.7B

$14.2B

11.4%


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Q&A


AGENDA


Trends Impacting Segment

School closures created an influx of larger classroom sizes;

Schools are doing more with less;

Universities are turning into hotel destinations designed to entangle the student;

Push for STEM education;

Online testing standards in K-12;

Technology Needs

Digital signage for stadiums, admin areas, bookstores, café’s and cafeteria;

Chromebooks for K-12 coupled with higher bandwidth access points;

Call for surveillance in K-12 and postsecondary;

E-ticketing for postsecondary;

Education Market Observations


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Q&A


AGENDA


“The Classroom”


Chrome continues to tug on Windows PC shipments during the K-12 buying season

0%

20%

40%

60%

80%

Jul

Jun

May

Ap

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Mar

Feb

Jan

De

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No

v

Oct

Sep

Au

g

Jul

Jun

May

Ap

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201620152014

Un

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Chrome OS OS X Windows

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Source: The NPD Group / Distributor Track and Reseller Tracking Service (overlap removed) –Include BTO Notebooks

Chromebook Unit Shipments

Notebook Unit Share by Operating System

Buying Season Buying Season Buying Season


Notebooks & Tablets Landscape

NB (Clamshell, Non-Touch)

BTO NB (excl. 2-in-1)

Tablets (excl. Detachable)

Tablets (Detachable)

NB (2-in-1, Slide/Flip/Twist)

NB (Clamshell, Touch)

BTO NB (2-in-1)

NB (2-in-1, Detachable)

-50%

0%

50%

100%

150%

200%

0 0 0% 10% 20% 30% 40% 50% 60% 70%

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1H

V. P

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B2B Notebooks & Tablets Share (Units), 2016 1H

Source: The NPD Group / Distributor Track and Reseller Tracking Service (overlap removed)

2-in-1 configurations among mobile personal compute devices continue to grow in popularity through the channel, led by pre-configured notebooks with a slide, flip, or twist form

2016 1H Sales

3.5M


19%33%

21%

26%

31%

21%

0%

25%

50%

75%

100%

Q1 Q2 Q3 Q4 Q1 Q2

2015 2016

Other

Samsung

ASUS

Dell

Acer

Lenovo

HP Inc.

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Source: The NPD Group / Distributor Track and Reseller Tracking Service (overlap removed) – includes BTO Desktops

Quarterly Chromebook Unit Volume by Brand, Indirect B2B

1.5X more Chromebooks were sold through the indirect B2B channel for the first half of the year, up 46% Y/Y

HP and Lenovo more than doubled their Chromebook unit sales, capturing 21 and 5 unit share points, resp.

Although Acer was flat in unit volume Y/Y, the brand lost 10 points from a unit share perspective

Chromebooks


0%

25%

50%

75%

100%

Q1 Q2 Q3 Q4 Q1 Q2

2015 2016

Galaxy Tab 4

Galaxy Tab S2

Galaxy Tab A

Surface 3

Surface Pro 4

iPad Mini 2

iPad Mini 4

iPad Pro

iPad Air

iPad Air 2

17

Source: The NPD Group / Distributor Track and Reseller Tracking Service (overlap removed) – includes BTO Desktops

Top 10 Tablet Families Quarterly Unit Volume, Indirect B2B Sales

Tablet sales are up 4% from a unit perspective and 8% from a dollar perspective for the first half of 2015

Apple maintain its position as the top brand, followed by Microsoft and Samsung ; growth was experienced across all three brands

MSFT Surface Pro 4 have grown to 15% of indirect B2B tablet sales with greater success than its predecessors; iPad Pro have also grown in popularity

Tablets


“STEM Education”

3D Printer


“STEAM Education”

Plotter


“Physical Security”


“ProAV”

“Movie Nights”


“Point-of-Sale”


“For Chromebooks”


“Mimicking Colleges”

Source: Association of College Bookstores


Thank youThank you

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state of the k-12 market · network security solid state drives access points bto desktops bto...

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