According to Context, W. European desktop monitor distributor sales see growth in early Q4 2019, following the trend begun in the previous three quarters of the year, with higher demand from consumer channels driving the market.
Combined business- and consumer-targeted monitor sales are up by 7% Y-o-Y in October 2019. While Q3 2019 saw growth in business sales alone, both segments are up in October, with increased sales to consumer etail and retail driving overall growth. In fact, the typical November sales started picking up in October, with sales to consumer channels (etail and retail) in Germany, UK, Spain and France growing by 30% over September 2019. For instance, October 2019 sales are up by over 60% month-over-month in Germany.
However sales are down on a Y-o-Y basis (specifically by -1% Y-o-Y), a sign the market is slowing down. Context also notes October revenues from sales to consumer etail are at their highest yet, with market share of over 30%, and are similar to those generated by sales to SMB resellers. The year also sees different pricing terms. While 2018 saw an increase in €200–250 models distributors sold to consumer channels, 2019 sales are driven by increasing sales of cheaper 25.3-, 22- and 21.5-inch models costing less than €200.
The analyst expects strong volume sales for Q4 2019, with most demand being in October and November, even if gradual monitor market slowdown should trigger more aggressive vendor behaviour. Thus, any price competition increase may affect 2019 desktop monitor revenues.
