European Switch Market Finishes 2014 with Sales Up 7% and Bookings 4% Higher than 2013

Total reported sales for all switch categories in Europe for Q4 of 2014 were 8% below the previous quarter and 7% better than the fourth quarter of 2013. Sales units for Q4 2014 came in 8% less than Q3 and 5% better than Q4 2013.

The total booking euros reported for all switch categories in Europe for Q4 2014 ran 9% less than the previous quarter and below Q4 2013 by 5%. The fourth quarter’s book-to-bill ratio for euros was 0.919. Booking units in Q4 2014 were 10% less than Q3. The fourth quarter’s book-to-bill ratio for units was 0.937.

The fourth quarter versus the third shows lower euros and units for all but rocker units. In total euros were down almost 8% and units worse by just over 8%. The average selling prices (ASP) was nearly unchanged on mixed results. Q4 compared to a year ago shows gains in euros for more than half of eight categories and a 7% rise in total. Units were up 5% in total with increases in half of the categories. ASPs increased for over half of the eight categories and 2% in total. Year to date euros were up 7% driven by increases in half the categories. Units rose slightly less in total with gains in five of eight categories. The ASP was up 1% with increases in most categories.

Sales Growth by Switch Category

Sales Growth by Switch Category

  Q4 2014 Versus Q3 2014 Q4 2014 Versus Q4 2013 CY 2014 Vs. CY 2013
Category Euros Units ASP Euros Units ASP Euros Units ASP
DIP -33.2% -32.2% -1.5% 35.1% 47.4% -8.3% 38.9% 50.9% -8.0%
Keylock -11.0% -22.7% 15.2% -9.3% -37.7% 45.5% -2.2% -22.9% 26.9%
Push Button -0.4% -2.1% 1.8% 45.2% 22.7% 18.3% 16.1% 10.0% 5.6%
Rocker -2.5% 1.9% -4.4% 0.3% -0.4% 0.7% -1.2% -4.0% 3.0%
Slide -10.1% -9.8% -0.3% 25.7% 35.4% -7.2% 1.6% 15.0% -11.6%
Snap Action -6.1 % -4.2% -2.0 % 6.4% 4.0% 2.3% 9.9% 5.0% 4.7%
Tact -6.4% -8.2% 1.9% -9.8% -1.1% -8.8% -10.6% 1.0% -11.5%
Toggle -18.6% -29.4% 15.3% -15.3 % -26.9 15.8% -10.1% -14.6% 5.3%
Total -7.8% -8.4% 0.7% 7.3% 4.6% 2.5% 6.6% 5.3% 1.2%

When compared to the third quarter total bookings were down in euros for seven of eight types and in total euros by 9%. Units were nearly the same as euros and lost 10%. The average booking price slipped for five types but rose less than 1% in total. Compared to the same quarter a year ago, euros and units were down 5% and 9%. The ABP rose 4% with price gains for most categories. Year to date booking euros were up 4% in total units came in 7% better with over half of categories improving. Booking prices fell for all but three categories and by 2% in total.

Bookings Growth by Switch Category

  Q4 2014 Versus Q3 2014 Q4 2014 Versus Q4 2013 CY 2014 Vs. CY 2013
Category Euros Units ABP Euros Units ABP Euros Units ABP
DIP -43.9% -36.7% -11.4% 10.6% 39.2% -20.6% 36.0% 49.5% -9.1%
Keylock -19.5% -16.7% -3.4% -6.8% -24.8% 23.9 % 4.1% -14.4% 21.7%
Push Button -6.5% -2.3% -4.3% 10.3% 3.6% 6.4% 4.3% 2.1% 2.2%
Rocker 5.8% 6.2% -0.4% 1.1% -1.0% 2.1% 0.0% -1.1% 1.1%
Slide -2.5% -24.8% 29.7% 0.9% 11.0% -9.1% 5.1% 30.5% -19.5%
Snap Action -1.9% -1.6% -0.3% -7.8% -8.5% 0.7% 2.5% 3.3% -0.8%
Tact -18.5% -10.8% -8.6% -6.0% -12.7% 7.7% 4.5% 5.1% -0.6%
Toggle -24.0% -37.5% 21.6% -34.0% -39.4% 9.0% -17.8% -16.6% -1.4%
Total -9.3% -9.8% 0.5% -4.7% -8.7% 4.3% 4.0% 6.7% -2.5%

The graph below shows total quarterly indexed sales and bookings in euros and units for the reported data since Q4 CY 2012. All measures decreased through 2012. 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. In Q3 sales improved as bookings slipped and all measures finished the year lower.

Book-to-bill euros generally declined to a low in Q3 of 2013 improved the next two quarters only to move down through Q4 of 2014. The unit ratio had a similar but generally lower path than the euros. The ABP-to-ASP ratio has been above 1.0 for four of the nine quarters shown.

For the period, indexed sales and booking prices generally trended lower, except for the last three quarters. Booking prices were generally slightly higher than selling prices, until the last three quarters.

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.

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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