Channel partners' trading figures set to be impacted for rest of 2022 due to 'erratic' chip supply
The IDC says OEMs are seeing demand outstrip supply
Channel partners are likely to see impacts on their revenue, cash flow and profits for the rest of the year as supply chain issues continue to affect the hardcopy market.
That is according to the IDC, which says shipments of microchips are likely to be "erratic" for the remainder of 2022, despite availability of them showing early signs of improvement.
It claims most OEMs are seeing demand outstrip supply, especially in higher-speed A4 and A3 colour segments where more microchips are required for manufacturing the products.
"This is having an impact on revenues, cash flow, and profits, and the same can be said for channel partners," the IDC said in a statement.
Western Europe hardcopy market slumps
The analyst firm says its figures show that the overall Western European hardcopy market declined 2.6 per cent year on year in Q2 to 4.28 million units shipped.
Inkjet shipments dropped by 2.2 per cent in Q2, although consumer devices increased by 2.9 per cent while business inkjet shipments declined sharply by 23.3 per cent.
Meanwhile, overall laser shipments fell by 3.7 per cent year on year in Q2, colour shipments dropped by 13.8 per cent while monochrome shipments increased 3 per cent.
The IDC says UK shipments declined in line with the general growth patterns for Western Europe.
It claims some OEMs have now switched their attention to monochrome A4 printers as they contain fewer microchips and predicts full inventories are not likely to be available until 2023.
"Quarter-on-quarter shipments continue to be erratic as lingering supply chain issues with microchips are having a negative impact on most OEMs, their channel partners, and their customers," said Phil Sargeant, senior program director of Western European imaging, hardware devices and document solutions group at IDC.
"Although there may be some improvement in the forthcoming quarters, some OEMs are reverting to simple monochrome printers as these contain the least number of microchips and other components, meaning more can be produced from a limited stock of parts and indicating the importance of the black-and-white page."
It comes after Logitech said it is seeing the impact of the global semiconductor chip shortage moderating, with chief executive Bracken Darrell expecting problems to be overcome by the end of the year.
"We are not over it, but the symptoms are getting milder," he told Reuters.
"We will be free and clear in the third quarter, or in the worst case, the fourth quarter."
Cyber security company Goldilock COO Stephen Kines says it is "very reliant" on chips and has a "really long supply chain".
Asked by CRN if he feels problems with the chip shortage will come to an end by the end of the year, he said: "Our supply chain is about nine months long because of those chips and yet we're all in a scramble to stockpile those.
"I'm not sure I would be as optimistic as being at the end of this year. I think we're still going to be suffering with a fair bit of shortages."