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Switch and relay analyst, Michael Schwert, provides an overview of the switch and relay industry in Europe. Future articles from Schwert will include a comparative analysis of the European market to the North American market. .

A First Look at the European Switch Market

Michael Schwert Nov. 10, 2008
 
   

A month ago Cumulus published its first full European edition of Switch Tracks. The following is an overview of what we found. In the future comparisons of North American and European switch markets will appear here.

Total reported sales for all switch types in Europe for Q1 of 2008 were 16% above the previous quarter and 9% less than the first quarter of 2007. Sales units for Q1 2008 were 19% better than the units sold in Q4 2007 and 10% below in Q1 2007.

The total booking dollars reported for all switch types in Europe for Q1 2008 came in 5% better than the last quarter of 2007 and 8% below Q1. The first quarter’s book-to-bill ratio for dollars was 1.000. Booking units in Q1 2008 ran 9% above Q4. The first quarter’s book-to-bill ratio for units was 1.021.

The graph below shows the market share of sales euros for each of the eight switch types for CY 2007.

Total Estimated European Switch Market

The first quarter versus the fourth of last year showed strong sales euro and unit growth. Euros dropped for keylock switches and all other types had growth in euros and units. Average selling prices fell in six of eight types and overall. Q1 compared to a year ago shows an opposite result. Sales in euros and units fell in almost every type and in total. Average selling prices had mixed results with four types up and four types down with a small gain in total.

Sales Growth by Switch Type

 
Q1 2008 vs. Q4 2007
Q1 2008 vs. Q1 2007
Category
Euros
Units
ASP
Euros
Units
ASP
DIP
13.1%
39.4%
-18.8%
-6.2%
11.4%
-15.8%
Keylock
-6.3%
2.5%
-8.6%
-14.7%
-16.7%
2.4%
Push Button
13.2%
22.6%
-7.6%
-3.3%
-2.0%
-1.3%
Rocker
6.6%
22.2%
-12.8%
3.8%
8.6%
-4.3%
Slide
13.1%
3.2%
9.6%
-9.1%
-13.6%
5.1%
Snap Action
19.2%
16.4%
2.5%
-8.7%
-12.1%
3.9%
Tact
17.1%
20.1%
-2.5%
-16.0%
-12.5%
-4.0%
Toggle
3.4%
15.7%
-10.7%
4.1%
-10.7%
7.4%
Total
16.2%
19.1%
-2.4%
-8.9%
-10.3%
1.6%

When compared to the last quarter total booking euros and units rose for all but push button and snap action switches. Units grew stronger than euros pushing the average booking price lower in five of eight types and in total. Bookings in Q1 versus a year ago were lower in total euros and units. This caused by weakness in snap action and tact switches. Similar to sales, average booking prices compared to the same period a year ago were up in four and down in four types, with a slight increase in total.

Bookings Growth by Switch Type

 
Q1 2008 vs. Q4 2007
Q1 2008 vs. Q1 2007
Category
Euros
Units
ASP
Euros
Units
ASP
DIP
66.8%
109%
-20.3%
22.4%
83.6%
-33.3%
Keylock
20.0%
50.0%
-20.0%
24.3%
23.2%
0.9%
Push Button
-0.9%
-32.2%
46.0%
1.6%
-40.8%
71.6%
Rocker
20.6%
10.6%
9.1%
-0.5%
11.1%
-10.5%
Slide
4.8%
7.2%
-2.2%
13.7%
1.9%
11.6%
Snap Action
-3.6%
-4.3%
0.8%
-14.9%
-18.6%
4.6%
Tact
15.0%
25.2%
-8.1%
-9.1%
-4.1%
-5.1%
Toggle
33.0%
76.9%
-24.8%
1.5%
6.4%
-4.6
Total
4.9%
9.3%
-4.0%
-8.4%
-10.2%
2.0%

The graph below shows total quarterly indexed (Q1 2007 = 100) sales and bookings in euros and units for the reported data since Q1 CY 2007. All sales and booking measures were at a period high in Q1 of 2007. Bookings hit a low in Q3 of last year and have improved in each quarter since then. Sales reach a low in Q4 and saw good improvement in Q1.

Total Reported European Switch Sales & Bookings

Book-to-bill dollars and units declined through Q3 and jumped in Q4 then settled just above 1.0. The ABP-to-ASP remained steady near 1.0 except for a jump higher in Q2 of last year.

Total Reported European Switch Market Ratios

For the period, booking prices peaked in Q2 of 2007 and have generally declined since then. Selling prices hit a high in Q4 of last year and have fallen some since then.

Total Reported European Switch Prices
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