Tracking Market Conditions

Intel & AMD: The Perils of Being Number One and How they will Impact ITAD and Electronic Recycling

In this analysis, we look at two companies that have a major impact on the ITAD sector and its future. The technology that Intel and AMD creates will affect the ITAD sector in numerous ways, including what kind of products will be available for the secondary market and how quickly a refresh cycle takes place. Although Intel has traditionally been the giant in the semiconductor sector, AMD has outperformed it this quarter. Continue reading below.
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By David Daoud: Wall Street loves companies that are number one in their respective business sector, and lead in market share. However, I used to tell my clients that it may not always be the optimum stance in being number one. Firstly, that’s the ceiling, even if you have room to capture more market share, there is still nothing higher than number 1. Then there is the crazy amount of scrutiny from investors. They will want more and more of you, and then as a CEO or CFO, you are constantly worried about how you will share news and updates in the next earning season that would help maintain the company’s lead.  And if there is no good news, it’s mayhem. I think the number two company is probably better positioned. There is less scrutiny, and you can still do very well.

Case in point: Intel and AMD are generally in the same business. They have a huge impact on the ITAD and recycling sector by virtue of their contribution in defining today and tomorrow’s technology. Their work can speed up or slow a refresh cycle. They can get end-users to retain their system longer and vice versa. They can sway vast numbers of partners to follow their lead. Intel has about 250 such partners, and it can orchestrate product launches, roadmaps, etc.

Intel is much bigger, with 2023 market capitalization of some $150 billion to $200 billion, though as of today (August 2, 2024), it fell below $100 billion due to a rough quarter. AMD is typically around $100 billion to $150 billion, settling today at some $134 billion. Intel’s 2023 revenue was approximately $54.23 billion, vs. $22.7 billion for AMD. Everyone knows Intel holds the lion share of the CPU and GPU markets, upward of 60-70% in the desktop and laptop CPU space. In the server market, Intel tends to peak at 75-85%, etc.

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Analyst/Author: David Daoud | Analyst

David Daoud has researched the mainstream IT hardware market since 1996 and expanded into hardware disposition research in 2003. He has spearheaded the creation of IDC’s GRADE certification. Since then, David has been providing consulting and expert advice to companies looking to establish best practice in their IT equipment decommissioning and helped leading ITAD service providers assess demand, understand competition, and forecast what’s to come. David is currently the Principal Analyst at Compliance Standards, which focuses entirely on the end-of-life of IT equipment. He can be reached at 508-981-6937 or at ddaoud@compliance-standards.com
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Analysis: Sage Expands Beyond ITAD, Breaks into the Break-Fix Market

by | Oct 28, 2024 | , , , ,

On October 22, 2024, Sage Sustainable Electronics (Sage) issued a press release via Businesswire to announce its acquisition of an electronics repair firm called Relectro. This acquisition is somewhat unique in Sage’s context because Relectro does not operate in Sage’s traditional ITAD space. It offers board-level and post-warranty repair for devices like laptops, tablets, and mobile handsets, which means that it operates in a stage that precedes Sage’s typical involvement. As such, we perceive this acquisition as a pathway for Sage to expand upstream in the ITAM sector.

Ingram Micro’s ITAD Business at a Crossroads: 2025 Could Be a Make-or-Break Year

by | Oct 4, 2024 | , , ,

I was excited to learn that Ingram Micro (IM) filed for an IPO on the last day of September. Becoming a public company would give us better visibility on how the company is performing, even if its ITAD unit is small in comparison to its core business. The IPO filing by Platinum Equity would pave the way for the return of Ingram Micro to the public market after it left it in 2016. In 2021, Platinum Equity acquired it from previous owner, HNA Group, for $7.4 billion.

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M&A: Iron Mountain’s ITAD Acquisitions: A Strategic Move or Risky Business?

by | Oct 1, 2024 | , ,

The recent news stories of Iron Mountain acquiring the Irish firm Wisetek have created a head-scratching moment. As I spoke to a number of executives in the ITAD space, the general reaction has been: Are we seeing another Arrow in the making? However, it would be naïve to believe that the purchase of three ITAD-related entities could in itself spell doom. Iron Mountain certainly has its work cut out in terms of integration, optimization and messaging, but there are plenty of opportunities ahead to properly leverage its three ITAD units.

Lenovo’s Positive AI PC Momentum: Key Considerations for ITADs

Lenovo’s Positive AI PC Momentum: Key Considerations for ITADs

by | Aug 16, 2024 | , , ,

I am impressed with Lenovo’s latest earnings results as it seems to be leading the charge in the AI PC sector, showcasing strong performance. Dell and HP are expected to release their earnings results at the end of the month and we should see whether the Lenovo story is a broad-based market trend or unique to the Chinese company. Lenovo’s latest earnings report highlights strong growth, characterized by a 20% increase in sales, with net income up even more.

Navigating New Climate Regulations: Impact on ITAD and Strategic Recommendations

by | Jul 30, 2024 | , ,

With the rapidly deteriorating environment and climate, pressure is mounting on global corporations and even small businesses to address their own environmental posture.  Several regulations, passed or are under consideration, aim at forcing companies to be both transparent and make changes in the way they manage their business to lower climate risk.

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