Monthly Switch and Relay Update

03.02.2009 // Posted by: Michael Schwert // Posted in: Articles, Switches & Relays

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North American Switch Market Ends 2008 With Sales Dollars Down 4% And Bookings 8% Lower Than 2007

Total reported sales for all switch types in North America for Q4 of 2008 were 4% less than the previous quarter and 11% lower than the fourth quarter of 2007. Sales units for Q4 2008 were 23% below the units sold in Q3 2008 and 30% less than Q4 of 2007.

The total booking dollars reported for all switch types in North America for Q4 2008 came in 12% less than last quarter and below Q4 2007’s total by 21%. The third quarter’s book-to-bill ratio for dollars was 0.823. Booking units in Q4 2008 ran nearly 26% Q3. The fourth quarter’s book-to-bill ratio for units was 0.925.

The fourth quarter versus the third showed total sales dollar and units down 4% and 23% respectively. DIP, keylock, and slide switches improved with the other five loosing dollars. Unit loses in five of eight types, most significantly for tact switches, pushed the total down 23%. This caused ASP’s to improve in five of eight types and near 25% overall. This significant jump in price is due more to a mix shift toward more expensive switch types as 36% few tact switches were sold in the quarter. Q4 compared to a year ago shows unit losses for all types and nearly the same for dollars. ASP’s improved for all but slide switches with total increasing over 26%. Again, this dramatic change is linked to a mix shift with 43% fewer tact switches sold versus a year ago. Comparisons for 2008 versus 2007 show mixed changes. DIP and tact are all up in dollars as are rocker and snap action to a lesser degree. Units and prices are up in half the types and down for the other half. Overall dollars are down 4%, units and ASP both off by 2%.

Sales Growth By Switch Type

	Q4 2008 vs Q3 2008			Q4 2008 vs Q4 2007			CY 2008 vs CY2007
Category	Dollars	Units	ASP	Dollars	Units	ASP	Dollars	Units	ASP
DIP	-8.9%	-13.3%	5.0%	3.5%	-4.7%	8.6%	3.5%	5.4%	-1.7%
Keylock	25.1%	16.3%	7.6%	-11.1%	-19.6%	10.6%	-28.2%	-20.8%	-9.4%
Push Button	0.7%	-4.5%	-5.4%	-27.4%	-45.7%	33.7%	-19.4%	-26.6%	9.8%
Rocker	-11.5%	-22.9%	14.8%	-7.5%	-9.0%	1.7%	0.7%	6.1%	-5.1%
Slide	17.3%	19.1%	-1.5%	-19.0%	-11.1%	-8.8%	-11.9%	5.6%	-16.5%
Snap Action	-0.5%	-6.8%	6.8%	2.9%	-6.3%	9.8%	0.5%	-11.0%	12.9%
Tact	-26.1%	-35.6%	14.8%	-36.5%	-43.3%	11.9%	4.9%	2.7%	2.1%
Toggle	-1.7%	10.4%	-10.9%	-26.3%	-30.0%	5.4%	-12.0%	-19.5%	9.4%
Total	-4.2%	-23.1%	24.5%	-10.9%	-29.6%	26.5%	-3.9%	-2.1%	-1.8%

When compared to the last quarter total booking dollars and units dropped 12% and just over 25% respectively with losses in seven of eight types for each. The total ABP increased nearly 18% with five of eight types rising versus the previous quarter. Booked dollars and units in Q4 against a year ago were down in all eight types for a more than 21% overall drop in dollars and 30% for units. The quarterly ABP versus the same period of last year moved higher for all types. Similar to sales, total booked dollars, units, and prices fell 8%, 2% and 6% respectively for 2008 compared to 2007. Seven of eight types contributed to losses in each metric.

Bookings Growth By Switch Type

	Q4 2008 vs Q3 2008			Q4 2008 vs Q4 2007			CY 2008 vs CY2007
Category	Dollars	Units	ABP	Dollars	Units	ABP	Dollars	Units	ABP
DIP	-12.5%	-10.5%	-2.3%	-28.6%	-29.3%	0.9%	-3.6%	-0.3%	-3.3%
Keylock	-0.2%	-26.2%	35.2%	-25.4%	-37.2%	18.8%	-20.6%	-19.3%	-1.7%
Push Button	-19.3%	-16.0%	-3.9%	-37.8%	-56.5%	43.0%	-18.8%	-28.9%	14.1%
Rocker	-12.5%	-23.4%	14.1%	-23.5%	-29.1%	7.9%	-10.0%	-2.6%	-7.7%
Slide	3.8%	-10.2%	15.5%	-25.8%	-36.4%	16.6%	-22.5%	-4.7%	-18.7%
Snap Action	-5.8%	12.0%	-15.9%	-0.3%	-1.5%	1.2%	2.2%	-4.2%	6.6%
Tact	-39.1%	-45.0%	10.8%	-37.1%	-40.6%	6.0%	-1.2%	3.1%	-7.3%
Toggle	-31.7%	-38.4%	10.9%	-24.9%	-39.6%	24.3%	-18.6%	-21.7%	-4.2%
Total	-12.4%	-25.5%	17.6%	-21.4%	-29.8%	11.9%	-8.0%	-2.1%	-6.0%

The graph below shows total quarterly sales and bookings in dollars and units for the reported data since Q4 CY 2006. Unit sales and bookings were on a significant upward trend that started in the fourth quarter of 2006 and peaked in the beginning of 2008. Sales and booking units and dollars fell significantly in third and fourth quarters of 2008.

Book-to-bill dollars ended its creep upward in Q3 of 2008 and has come down for a second time as book-to-bill units followed but not as deeply. The ABP-to-ASP remained steady at the end of 2007 on into 2008 then took a step down in Q2 and again Q4.

For the period, booking prices peaked in Q4 of 2006 and have generally declined until Q4’s jump upward. Selling prices hit a two-year high in Q4 of 2008. Again, these total market price increases are largely due to mix shift toward high priced switches.

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