1/15/2024 0 Comments Zebra technologies promoThis made ZBRA possible to switch from aggressively expanding the business to "energy saving mode" on time. Management's awareness of the issues created by the supply chain strengthening is a key factor, in my opinion. The good thing about Zebra Technologies is that the company is aware of all the challenges and doesn't bury its head in the sand, but speaks out about them openly : I've provided further details on the demand situation in my recent macro article. This has led to lower demand for various goods and services, as prices are rising faster compared to wage growth. Global inflation is coming down, but it is accompanied by a slowdown or decline in wages for certain population groups. For Zebra's clients, the primary concern is to retain its own customers, who are likely to face the impact of high prices. Consequently, the focus on process automation and optimization has taken a backseat. ![]() In the meantime, however, the logistics situation has relatively stabilized in most enterprises. In 2022, the logistics industry experienced significant changes, especially in terms of peak lead times in the supply chain. The decline in that segment is primarily due to reduced demand caused by fewer large order deployments in the EVM segment. As far as I can see, the data doesn't favor ZBRA - the company is losing in a more attractive market in terms of business expansion.īut upon further analysis, I discovered that the management's objective does not involve reducing operations in their largest segment. The second market - the one where Zebra is declining - is expected to reach $36.5 billion by 2027, growing at a CAGR of 11- 14 %. The first market - the one where Zebra is seeing growth - is expected to reach $11.06 billion by 2032, growing at a CAGR of 7 - 9 %, according to various public sources. At this stage, it became interesting for me to look at the growth prospects of two addressable markets - the barcode printer market and the automatic data capture market. The multi-directional dynamics of the financial indicators suggest either attempts to reorient the business from one niche to another, or competitive weakness in the largest segment against the backdrop of strength in the smaller one. EVM segment : automatic data capture solutions, offering mobile computing, data capture, RFID, scanning, machine vision, and workflow optimization solutions, along with services.Īs we can see from the latest financial data, ZBRA is gaining momentum in barcode printing and asset tracking technologies and losing revenue in what remains its most important segment - automated data capture solutions.AIT segment : barcode printing and asset tracking technologies, including printers, supplies, and services. ![]() Zebra reports under 2 operating segments, based on served market areas: The company has 2 product categories: Tangible Products and Services and Software. The company collaborates closely with customers and partners to optimize end-to-end workflows and solve complex business challenges. Zebra's solutions span across various industries, including retail, e-commerce, transportation logistics, manufacturing, and healthcare. According to the latest 10-Q filing, Zebra Technologies Corporation ( NASDAQ: ZBRA) is a global leader in providing innovative solutions for the Automatic Identification and Data Capture industry.
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