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October 2012 Q2 European Switch Market Update

11.07.2012 // Michael Schwert // Switches & Relays

European Switch Market Ends First Half of 2012 with Sales 7% Lower and Bookings 9% off from 2011

Total reported sales for all switch categories in Europe for Q2’12 were 2% below the previous quarter and 7% less than observed in the second quarter of 2011. Sales units for Q2’12 ran 3% better Q1’12 and 14% less Q2’11.

The total booking dollars reported for all switch categories in Europe for Q2’12 were 11% less than the previous quarter and below Q2’11 by 9%. The second quarter’s book-to-bill ratio for Euros was 0.983. Booking units in Q2’12 came in 5% lower than Q1. The first quarter’s book-to-bill ratio for units was 0.917.

The second quarter versus the first shows lower rates for sales Euros in over half of the categories and down 2% in total. Units increased 3% in total and in half of the categories while the average selling prices (ASP) decreased for five categories and declined over 4%% in total. Q2 compared to a year ago shows loses in Euros and units for most categories. Euros and units were down 7% and 16% in total while ASPs increased for five of the eight categories and was up by 11% in total. The first half of this year compared to last shows Euros down 7% in total with loses in five of eight categories. Units are down for all types and 14% in total while ASPs rose in all but one category and nearly 9% in total.

Sales Growth by Switch Category

  Q2 2012 vs. Q1 2012 Q2 2012 vs. Q2 2011 YTD 2012 vs. YTD 2011
Category Euros Units ASP Euros Units ASP Euros Units ASP
DIP 22.7% 20.3% 2.0% 11.4% -5.3% 17.7% 2.5% -4.8% 7.7%
Keylock -32.1% -6.9% -27.1% -17.1% -0.2% -16.9% -8.9% -12.7% 4.4%
Push Button -14.4% -6.7% -8.3% -14.6% -31.1% 23.9% -11.2% -27.3% 24.4%
Rocker -20.7% 0.3% -21.0% -26.2% -29.4% 4.5% -18.0% -25.8% 10.5%
Slide 16.32% 49.5% -22.2% 5.1% 5.0% 0.1% 5.1% -0.8% 5.9%
Snap Action -5.0 % -1.5% -3.5 % -3.2% -7.0% 4.1% -2.9 % -2.4% -0.6%
Tact 3.0% 2.4% 0.6% -20.5% -22.7% 2.9% -15.6% -20.7% 6.4%
Toggle -5.0% -5.9% 1.0% -6.2 % -25.1% 25.3% 2.5% -15.9% 21.9%

Total

-1.8% 2.5% -4.5% -7.1% -16.4% 11.1% -6.7% -14.1% 8.6%

When compared to the last quarter total bookings were higher in Euros for four of eight categories but in total Euros were down 11%. Units moved down in five categories and 5% in total. The average booking price fell for five of eight categories and about 6% in total. Bookings in Q2 versus a year ago were down in Euros and units for the majority of categories. In total, Euros decreased by 11% and units by 21%. The total average booking prices compared to the same period a year ago was up 12% in total and in five of the categories. So far this year, sales Euros are down 9% and 19% in units with loses in the majority of categories. Booking prices have risen for all but DIP switches and 12% in total.

Bookings Growth by Switch Category

  Q2 2012 vs. Q2 2012 Q2 2012 vs. Q2 2011 YTD 2012 vs. YTD 2011
Category Euros Units ABP Euros Units ABP Euros Units ABP
DIP 6.4% 2.5% 3.8% -13.1% -14.4% 1.6% -6.3% -4.1% -2.2%
Keylock -33.2% -14.0% -22.3% -51.4% -43.9% -13.9 % -33.4% -37.8% 7.1%
Push Button -5.7% 5.8% -20.3% -12.8% -10.1% -3.0% -12.0% -21.0% 0.6%
Rocker -15.5% -2.7% -13.2% -9.5% -6.9% -2.8% -14.6% -17.1% 3.0%
Slide 28.0% 53.6% -16.6% 17.0% 14.0% 2.6% 20.0% 18.5% 1.3%
Snap Action -17.7% -11.6% -6.9% -8.4% -14.0% 6.5% -4.8% -10.1% 5.9%
Tact 3.0% -3.8% 7.1% -21.9% -28.6% 9.3% -22.7% -27.3% 6.4%
Toggle 28.4% -7.3% 38.6% 48.2% -14.2% 72.8% 13.8% -12.7% 30.4%

Total

-11.1% -5.3% -6.1% -11.1% -20.9% 12.4% -9.2% -19.2% 12.3%

The graph below shows total quarterly indexed sales and bookings in Euros and units for the reported data since Q2 CY 2010. Sales and booking Euros and units moved higher starting in Q3 of 2009 and continued moving up until a dip in Q4 of 2010. Sales and booking Euros set two year highs in Q1 of 2011 then all but sales units moved lower the next two quarters. All measures except booking Euros moved lower in Q4 of last year and improved in Q1 and moved lower again in Q2 of this year.

CY 2010/2012 Total Reported European Switch Sales & Bookings Indexted

Book-to-bill Euros peaked in Q2 of 2010 then generally declined to a low in Q3 of last year improved the next two quarters only to move down in Q2. The unit ratio saw its best mark in Q4 of 2010 then fell to 0.8 in Q3 of last year and recovered in Q4 and Q1 then went down in Q2. The ABP-to-ASP ratio fell below 1.0 in the second and fourth quarters of 2010 but has been above 1.0 for most of the last two years.

CY 2010/2012 Total Reported European Switch Market Ratios

For the period, indexed sales and booking prices generally trended higher.

CY 2010/2012 Total Reported European Switch Price Index
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Featured Contributor:
Michael Schwert

Michael Schwert

Michael is the founder of Cumulus, Inc. He has more than 30 years of marketing and sales as well as design experience in the electronic and electrical component industry. Prior to founding Cumulus, he was Director of Marketing for Cherry Electrical Products and held other marketing management positions with Panduit, BRK Electronics, and Ideal Industries.

Cumulus provides market information and consulting services for the global electronic components industry. The company offers three publications: Switch Tracks, a quarterly report with market information on component switches; the Relay Report, a quarterly report with market information on component relays; and Market Notes, a monthly report on sales, bookings, and business conditions in the relay and switch market. Cumulus also manages projects that help leading global suppliers in the relay and switch industry to develop new products and reach new markets.

Schwert provides MarketEYE with monthly articles that include timely and accurate market information for the electromechanical component sector of the electronics industry.

Cumulus Inc.

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