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North America Q3 Switch Sales Down 7% with Bookings Down 17% from Q2

01.02.2013 // Michael Schwert // Switches & Relays

Total reported sales for all switch categories in North America for Q3’12 were 7% lower than the previous quarter and 4% better than the third quarter of 2011. Sales units for Q3’12 came in 14% less than units sold in Q2’12 and 4% below Q3 last year.

The total booking dollars reported for all switch categories in North America for Q3’12 ran 17% less than last quarter and above Q3’11’s total by 16%. The second quarter’s book-to-bill ratio for dollars was 0.915. Booking units in Q3’12 were down 17% from Q2. The second quarter’s book-to-bill ratio for units was 0.932.

The third quarter versus the second showed total sales dollars down 7% and units lower by 14%. All but DIP, push button, slide and toggle experienced dollar decreases. Keylock and toggle were the only categories to gain in units. Five of eight switch categories realized higher prices and the total ASP rose by 9%. The comparison to the third quarter of last year yielded opposite results dollars up in five of eight categories and 4% in total. Units were also up for six categories but down in total by 4% on losses in tact and rocker. Pricing from a year ago was up in four of eight types and in total by 9%. Year-to-date results compared to last year shows a mix of half the types rising and half falling in terms of dollars. Units and price were up for three of eight categories. In total units were down slightly causing the ASP to rise a little.

Sales Growth by Switch Category

 

Q3 2012 Versus Q2 2012

Q3 2012 Versus Q3 2011

YTD CY2012 Versus
YTD CY 2011

Category

Dollars

Units

ASP

Dollars

Units

ASP

Dollars

Units

ASP

DIP

1.4%

-1.8%

3.3%

17.9%

31.0%

-9.9

-10.0%

-8.5%

-1.6%

Keylock

-0.9%

11.7%

-11.3%

12.5%

1.3%

11.0%

-11.8 %

-28.2%

22.7%

Push Button

3.7%

-16.3%

23.9%

-5.5%

8.0%

-12.5%

-11.0%

11.7%

-20.3%

Rocker

-5.3%

-25.8%

27.7%

-1.6%

-22.0%

26.2%

4.1%

-10.7%

16.6%

Slide

7.1%

-3.6%

11.1%

11.1%

5.8%

5.0%

7.9%

17.4%

-8.1%

Snap Action

-11.9%

-9.8%

-2.4%

11.9%

10.3%

1.4%

5.5%

-6.7%

13.0%

Tact

-17.5%

-18.2%

0.8%

-20.4%

-18.7%

-2.2%

-3.2%

-2.6%

-0.7%

Toggle

6.7%

26.1%

-15.4%

4.0%

30.4%

-20.2%

0.3%

8.9%

-7.9%

Total

-6.7%

-14.5%

9.1%

4.4%

-3.8%

8.6%

1.0%

-1.4%

2.4%

When compared to last quarter total booking dollars and units decreased 17%. Dollars were down in all but slide and toggle categories and units fell in six of eight categories. Booked prices were down for a majority of categories but down in less than 1% in total. Booked dollars in Q3 against a year ago were up for most categories and in total by 16%. Units were also up for most categories but down in total by less than 1% on weakness in tact, rocker, and snap action. Prices showed four of the eight types increasing and the total moved 17% higher. Performance for the first three quarters of the year shows the majority of categories up in dollars and down in units. In total, dollars were up just over 1% and units nearly 10% lower. Most categories grew in booking price with the total going up 12%.

Bookings Growth by Switch Category

 

Q3 2012 Versus Q2 2012

Q3 2012 Versus Q3 2011

YTD CY2012 Versus
YTD CY 2011

Category

Dollars

Units

ABP

Dollars

Units

ABP

Dollars

Units

ABP

DIP

-14.1%

-5.4%

-9.1%

30.6%

54.6%

-15.5%

-22.6%

-20.1%

-3.2%

Keylock

-7.9%

-20.5%

15.9 %

38.4%

50.7%

-8.2%

-18.3%

-29.6%

16.0%

Push Button

-22.6%

-9.2%

-14.8%

-4.1%

4.3%

-8.1%

3.1%

2.0%

1.1%

Rocker

-13.4%

-4.3%

52.7%

20.4%

-14.1%

40.2%

6.8%

-9.4%

17.8%

Slide

22.1%

12.2%

8.8%

115%

100%

7.5%

7.7%

19.1%

-9.6%

Snap Action

-24.8%

-22.4%

-3.1%

20.4%

-4.7%

26.3%

6.3%

-5.7%

12.8%

Tact

-17.1%

-17.0%

-0.1%

-12.0%

-12.9%

1.0%

-9.0%

-16.5%

9.0%

Toggle

5.8%

26.0%

-16.0%

22.8%

52.0%

-19.2%

0.1%

12.1%

-10.8%

Total

-17.4%

-17.0%

-0.5%

16.4%

-0.3%

16.8%

1.1%

-9.6%

11.8%

The graph below shows total quarterly indexed sales and bookings in dollars and units for the reported data since Q3 CY 2010. Sales dollars improved in Q3’10 while the other three metrics moved down. All measures were lower in Q4 followed by improved bookings in Q1 with flat sales dollars and lower units. All but booked dollars improved in Q2 then all measures dropped sharply in Q3. Sales continued lower in Q4 while booking dollars jumped. The first half of this year saw improvement in all measures until the drop in Q3.

CY 2010/2012 Total Switch Sales & Bookings Index

Book-to-bill units generally have trended lower through Q4’10, then jumped back above 1.0 in Q1 of 2011, followed by another trend lower to Q1 of this year, improved in Q2 and slipped a bit in Q3. Book-to-bill dollars have shown a similar trend with more amplitude. The booking to selling price ratio had been trending lower until Q4 of last year, peaking in Q1 of this year then moved lower in Q2 and Q3.

CY 2010/2012 for Total DIP, Keylock, Push Button, Rocker, Slide, Snap Action, Tact, & Toggle Reported Switch Market

Indexed booking prices generally trended higher to a peak Q1’11, fell in Q2 and Q3, jumped back up in Q4 and Q1 of this year then fell in Q2 and held steady in Q3. Indexed selling prices have followed a similar but slightly lower path until Q2 of 2011 when booking prices moved below it. In most recent three periods booking price had been above selling and converged in Q3. The second price graph shows prices indexed since Q1’03 and both the selling and book prices have risen from all time lows set in Q3’09. Selling prices have increased to the highest level ever recorded in Q3 of this year.

CY 2010/2012 Price Index Total Switch Market

CY 2003/2012 Price Index Total Switch Market

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Statements of fact and or opinions expressed in MarketEYE by its contributors are the responsibility of the authors alone and do not imply an opinion of the officers or the representatives of TTI, Inc.

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.


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