IT distributor revenue declined 9.6% year over year to $19.6 billion in the third quarter of 2023, according to the IDC North America Distribution Tracker (NADT). The decline continues to be led by reduced demand for devices like PCs as consumers respond to higher inflation and retreat from the buying patterns of the previous two years. Meanwhile, Network Infrastructure maintained the growth trajectory exhibited in recent quarters.
“We continue to see resilient enterprise spending in the networking, software, and services categories as businesses prioritize digital transformation,” said Ruth Flynn, research vice president, IDC Tracker & Data Products. “However, devices remain soft as consumer electronics, peripherals, audio/video, and PC categories declined. Even enterprise infrastructure hardware saw declines as companies carefully prioritize their investments.”
Network Infrastructure revenue was $2.45 billion in the third quarter and Ethernet Switches achieved 55.6% year-over-year growth, continuing its five-quarter growth streak. Cisco remained the category leader with double-digit growth and more than 60% of the revenue share.
Software revenue reached $3.9 billion with a decline in year-over-year growth of 2.7%. System Infrastructure Software saw revenues grow compared to the previous quarter but experienced a 3.5% decline year over year to $2.1 billion. The top 4 companies in the System Infrastructure Software category all saw double-digit growth in the quarter, reducing the stratification among the top 3. Palo Alto Networks emerged as the category leader with year-over-year growth of 15.7%, underscoring the strength of security software.
The personal computing market saw a double-digit decline in revenues for the fourth consecutive quarter in Q3. However, the decline appears to be leveling out as the $3.6 billion in sales recorded in Q3 was relatively flat compared to Q2. Among the top PC companies, Acer was a bright spot, recording two consecutive quarters of year-over-year growth (at 6.7% and 12.5% respectively) and ending Q3 closing in on a position among the top 5.
A graphic illustrating North American IT distributor revenue across six categories (AV, Network Infrastructure, Personal Computing, Services, Software, and Other) during the third quarter of the past five years is available by viewing this press release on IDC.com.
The IDC North America Weekly Distribution Tracker and the IDC North America Monthly Distribution Tracker are built on the exclusive partnership between IDC and the Global Technology Distribution Council (GTDC) and provides the industry’s most comprehensive view of technology distribution data and market trends in the U.S. and Canada. The data in these Trackers is actual sales data collected weekly from sales receipts across the largest distributors in North America for more than 1,000 brands over several years. This data is mapped to IDC’s taxonomy with over 200 categories organized into 13 distinct product groups with detailed product attributes across categories.
About IDC Trackers
IDC Tracker products provide accurate and timely market size and segmentation, vendor share, and forecasts for hundreds of technology markets from more than 100 countries around the globe. Using proprietary tools and research processes, IDC’s Trackers are updated on a semiannual, quarterly, monthly, and weekly basis. Tracker results are delivered to clients in user-friendly Excel deliverables and on-line query tools.
For more information about the North America Weekly and Monthly Distribution Trackers, powered by GTDC, please contact Ruth Flynn at rflynn@idc.com.
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About IDC
International Data Corporation (IDC) is the premier global provider of market intelligence, advisory services, and events for the information technology, telecommunications, and consumer technology markets. With more than 1,300 analysts worldwide, IDC offers global, regional, and local expertise on technology, IT benchmarking and sourcing, and industry opportunities and trends in over 110 countries. IDC’s analysis and insight helps IT professionals, business executives, and the investment community to make fact-based technology decisions and to achieve their key business objectives. Founded in 1964, IDC is a wholly owned subsidiary of International Data Group (IDG), the world’s leading tech media, data, and marketing services company. To learn more about IDC, please visit https://www.idc.com/. Follow IDC on Twitter at @IDC and LinkedIn. Subscribe to the IDC Blog for industry news and insights.
About the GTDC
The Global Technology Distribution Council is the industry consortium representing the world’s leading tech distributors. GTDC members drive an estimated $150 billion in annual worldwide sales of products, services, and solutions through diverse business channels. GTDC conferences support the development and expansion of strategic supply-chain partnerships that continually address the fast-changing marketplace needs of vendors, end customers and distributors.
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