European Switch Market Ends First Half of 2014 with Sales up 4% and Bookings 6% Higher than 2013 | TTI, Inc.

Total reported sales for all switch categories in Europe for Q2 of 2014 were 1% above the previous quarter and 4% better than the second quarter of 2013. Sales units for Q2 2014 came in less 1% below units sold in Q1 and 5% better than Q2 2013.

The total booking dollars reported for all switch categories in Europe for Q2 2014 ran 3% less than the previous quarter and above Q2 2013’s total bookings by 6%. The first quarter’s book-to-bill ratio for euros was 1.025. Booking units in Q2 2014 were running 2% less than Q1. The fourth quarter’s book-to-bill ratio for units was 1.031.

The second quarter versus the first shows higher euros for three of eight categories. In total euros were up just over 1% and units lower by less than 1%. The average selling prices (ASP) increased in less than half the categories and were up almost 2% in total. Q2 compared to a year ago shows gains in euros for three of eight categories and a 4% rise in total. Units were up 3% in total with increases in three of eight categories. ASP’s increased for half of the eight categories and 1% in total. Year to date euros were up 4% driven by snap action switches. Units rose slightly more in total with gains in five of eight categories. The ASP was nearly unchanged despite losses in five of eight categories.

Sales Growth by Switch Category

  Q2 2014 Versus Q1 2014 Q2 2014 Versus Q2 2013 YTD 2014 Vs. YTD 2013
Category Euros Units ASP Euros Units ASP Euros Units ASP
DIP -0.5% 9.5% -9.2% 16.3% 31.8% -11.8% 23.7% 29.3% -4.3%
Keylock 2.6% 13.8% -9.9% 1.3% -5.2% 6.8% 1.3% -12.2% -33.3%
Push Button 2.2% -5.6% 8.2% -2.1% -2.8% 0.7% -4.1% 0.2% -4.3%
Rocker -1.5% -3.5% 2.0% -5.4% -7.7% 2.4% -3.5% -4.4% 1.0%
Slide -7.6% 1.2% -8.7% -15.0% -7.9% -7.8% -9.1% 4.5% -14.4%
SnapAction 3.9% -6.6% 11.3% 13.5% 0.2% 13.3% 10.3% 4.1% 6.0%
Tact -4.0% 3.1% -6.9% -14.1% 4.4% -17.7% -9.8% 3.5% -12.9%
Toggle -14.2% 11.1% -22.7% -17.2 % -15.6 -1.9% -9.1% -17.0% 9.3%

Total

1.3% -0.5% 1.8% 4.4% 3.4% 1.0% 4.4% 4.6% -0.2%

When compared to the first quarter total bookings were down in euros for six of eight categories and in total euros 3%. Units were nearly the same as euros and lost 2%. The average booking price slipped for five categories but was lower by less than 1% in total. Year to date booking euros were up 6% in total on the strength of snap action switches. Units came in 11% better with half of categories improving. Booking prices fell for all categories and by 4% in total.

Bookings Growth by Switch Category

  Q2 2014 Versus Q1 2014 Q2 2014 Versus Q2 2013 YTD 2014 Vs. YTD 2013
Category Euros Units ABP Euros Units ABP Euros Units ABP
DIP 3.2% 1.9% 1.2% 52.3% 57.8% -3.5% 35.1% 51.9% -10.8%
Keylock -9.1% -21.9% 16.4% -1.9% -25.8% 32.1% 3.1% -16.0% -27.0%
Push Button -6.5% 7.4% -13.0% -4.4% 14.5% -16.5% -7.7% -3.3% -5.3%
Rocker 0.5% -5.0% 5.8% -8.5% -2.7% -6.0% -1.9% -0.6% -1.4%
Slide -14.1% -2.2% -12.2% -7.7% 15.5% -20.1% -1.6% 26.4% -22.7%
Snap Action -3.0% -4.3% 1.4% 12.6% 24.9% -9.9% 10.3% 12.8% -3.2%
Tact -4.1% -2.3% -1.9% -9.1% 7.5% -15.5% -3.1% 5.7% -8.5%
Toggle -26.8% -32.4% 8.3% -17.8% -28.5% 15.0% -12.8% -10.6% -2.7%

Total

-2.9% -2.3% -0.6% 7.2% 16.3% -7.9% 6.1% 10.7% -4.3%

The graph below shows total quarterly indexed sales and bookings in euros and units for the reported data since Q2 CY 2012. All measures decreased from Q2 of 2012 through the rest of that year. The first quarter of 2013 had a nice move up for all metrics. In the second quarter sales improved slightly as bookings decreased followed by a decrease in all measures in Q3. Q4 saw sales decrease and bookings improve. In Q1 all metrics were at or near two year highs and slipped back a bit in Q2.

chart-1

Book-to-bill euros generally declined to a low in Q3 of 2012 improved the next two quarters only to move down in Q2 and Q3 of last year, then improved Q4 and Q1 with a decline in Q2 of this year. The unit ratio had a similar but generally lower path than the euros. The ABP-to-ASP ratio has been above 1.0 except for three of quarters, including Q2 of 2014. 

chart-2

For the period, indexed sales and booking prices generally trended lower. Booking prices are only slightly higher than selling prices. 

chart-3

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.  View other posts from Michael Schwert.

 

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.

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