Page 42 - DIY Investor Magazine - Issue 23

Overall device growth is just 1.6% this year following a flattish 2018. Having peaked in 2011, the PC market has been declining ever since with units falling a further 1.3% last year.
Tablets peaked in 2014 when 250 million units
were shipped but sales have since declined for 16 consecutive quarters – units declined 6% in 2018.
The smartphone market continues to falter amid high penetration and a slowing pace of innovation with units declining 1% last year with growth of 1.4% expected between 2017-2022.
At an IaaS level, storage spending is expected to decline by 1.8% per annum through 2022 despite expectations of a 10x increase in data creation between 2017-2025. This is because the cost of data storage is declining at a
commensurate rate: $100 next year will buy you 20-40% more gigabytes of storage than $100 will this year.
The outlook for mainframes also looks problematic with more than half of CIOs using mainframes today expecting to move off them within the next five years. While servers remain a bright spot, this largely reflects hyperscale demand and pass-through of higher server component prices (which are currently reversing).
Even within software, budgets continue to be reallocated away from legacy areas such as infrastructure.
Like electricity before it, the cloud has become both the source of and saviour from disruption, with cloud computing now providing the infrastructure to help businesses drive their digital transformation.
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Disclaimer
The information provided is not a financial promotion and does not constitute an offer or solicitation of an offer to make an investment into any fund or company managed by Polar Capital. It is not designed to contain information material to an investor’s decision to invest in Polar Capital Technology Trust plc, an Alternative Investment Fund under the Alternative Investment Fund Managers Directive 2011/61/EU (“AIFMD”) managed by Polar Capital LLP the appointed Alternative Investment Manager. Polar Capital is not rendering legal or accounting advice through this material; viewers should contact their legal and accounting professionals for such information. All opinions and estimates in this report constitute the best judgement of Polar Capital as of the date hereof, but are subject
to change without notice, and do not necessarily represent the views of Polar Capital. It should not be assumed that recommendations made in future will be profitable or will equal performance of the securities in this document.
Polar Capital LLP is a limited liability partnership number OC314700. It is authorised and regulated by the UK Financial Conduct Authority (“FCA”) and is registered as an investment advisor with the US Securities & Exchange Commission (“SEC”). A list of members is open to inspection at the registered office, 16 Palace Street, London, SW1E 5JD
DIY Investor Magazine | Oct 2019 42