Total reported sales for all switch categories in North America for Q3 of 2015 were 2% above as reported in the previous quarter and 2% better than observed in the third quarter of 2014. Sales units for Q3 2015 came in 14% above units sold in Q2 2015 and 21% more than Q3 of 2014.

The total booking dollars reported for all switch categories in North America for Q3 2015 ran 7% higher than the previous quarter and above Q3 2014 by 8%. The third quarter’s book-to-bill ratio for dollars was 0.974. Booking units in Q3 2015 were equal to Q2. The first quarter’s book-to-bill ratio for units was 0.807.

The third quarter versus the second showed total sales dollars up 2% and units 14% higher. Dollars were up for all but snap action and units improved for over half the categories. Prices were down 10% in total driven by push buttons and a mix shift to lower price categories. The comparison to the third quarter of 2014 yielded similar results dollars up in six of eight categories and 2% in total. Units were up for most categories but down in total by 21%. Pricing from a year ago was down in six of eight categories and in total by 16%. Year to date versus a year ago has dollars up 1% in total with gains in all but three categories. All in, units increased 5%. The ASP lost 4% as all but one category moved down.

Sales Growth by Switch Category
  Q3 2015 Versus Q2 2015 Q3 2015 Versus Q3 2014 YTD CY2015 Versus.
YTD CY 2014
Category Dollars Units ASP Dollars Units ASP Dollars Units ASP
DIP 7.6% 4.9% 2.6% 4.3% 2.0% 2.3% 9.4% 8.8% 0.5%
Keylock 1.0% -0.8% 1.9 % 16.0% 22.2% -5.1% 2.9% 15.7% -11.3%
Push Button 4.5% 36.2% -23.3% -0.1% 43.8% -30.5% 4.3% 24.9% -16.3%
Rocker 2.2% -2.8% 5.1% 4.5% 12.7% -7.3% -0.7% 2.5% -3.6%
Slide 5.2% 6.8% -1.4% 1.7% 32.5% -23.2% -1.9% 19.0% -17.6%
Snap Action -9.1% -4.7% -4.6% -11.2% 1.7% -12.6% -7.0% -3.3% -4.1%
Tact 25.3% 22.6% 2.2% 21.8% 32.6% -8.1% 2.5% 2.3% -0.2%
Toggle 8.5% 5.4% 3.0% 2.5% -15.0% 20.7% 3.3% -14.3% -20.7%
Total 2.2% 13.9% -10.3% 2.2% 21.3% -15.7% 0.8% 4.9% -4.1%

When compared to last quarter total booking dollars increased by 7%. Units were down in five of eight categories but unchanged in total driven by tact switches. Booked prices rose 7% with increases in half of the categories. Booked dollars in Q3 against the same quarter of 2014 were up for most categories and in total by 1%. Units were also up for most categories and near 8% in total. Prices were lower for most of the categories and 6% overall. Bookings year to date versus 2014 were down in total dollars and units. Dollars are down less than 1% and units 4% off. Booking price rose almost 3% with most categories down and a mix shift to lower priced switches.

Bookings Growth by Switch Category
  Q3 2015 Versus Q2 2015 Q3 2015 Versus Q3 2014 YTD CY2015 Versus 
YTD CY 2014
Category Dollars Units ABP Dollars Units ABP Dollars Units ABP
DIP 6.4% 9.9% -3.1% 0.8% 2.2% -1.3% -4.1% -7.1% 3.3%
Keylock 3.3% -7.8% -12.1 % -3.4% 1.6% -4.9% 3.5% 12.5% -13.9%
Push Button 8.9% 39.8% -22.1% 13.6% 46.2% -22.3% 3.9% 4.4% -1.3%
Rocker 13.6% -5.0% 19.5% 0.3% 6.5% -5.8% 8.6% 12.1% -3.1%
Slide 30.4% -8.2% 42.1% 48.6% 54.5% -3.8% 3.3% 20.6% -14.7%
Snap Action -3.3% -6.8% 3.7% -2.6% -3.6% 1.0% -3.7% -2.5% -1.4%
Tact 25.3% 22.6% 2.2% 21.8% 32.6% -8.1% 2.5% 2.3% -0.2%
Toggle -13.6% -1.1% -12.7% -11.4% -22.7% 14.6% -3.5% -21.8% -23.3%
Total 7.2% -0.1% 7.3% 1.3% 7.6% -5.8% -0.6% -3.6% 2.8%

The graph below shows total quarterly indexed sales and bookings in dollars and units for the reported data since Q3 CY 2013. All measures set two-year highs in Q3 0f 2013 and had been improving over the previous three quarters. In Q4 of 2013 all measures fell. Sales dollars improved in Q1 of 2014 and have since remained flat while units moved up and down but now sit near all-time highs as shown in the second graph below. In Q1 of 2014 booked units moved lower and continued lower until the last two quarters.

CY 2013/2015 Total Switch Sales & Bookings Index (Q1 CY 2003 = 100)
chart-1

CY 2003/2015 Total Switch Sales & Bookings Index (Q1 CY 2003 = 100)

chart-2

Book-to-bill units have generally trended lower over the last two years. Book-to-bill dollars have oscillated above and below 1.0 over the last two years. The booking to selling price ratio has trended higher over the past two years.

CY 2013/2015 Ratios for Total DIP, Keylock, Push Button, Rocker, Slide, Snap Action, Tact, & Toggle Reported Switch Market
chart-3

Indexed booking prices general increased over the last two years to a peak in Q1 and fell dramatically the last two quarters. Indexed selling prices improved until the start of this year and have declined the last three quarters and now sit at a Switch Tracks all-time low as shown in the second graph below.

CY 2013/2015 Prices for Total DIP, Keylock, Push Button, Rocker, Slide, Snap Action, Tact, & Toggle Reported Switch Market
chart-4

CY 2003/2015 Price Index Total Switch Market (Q1 CY 2003 = 100)

chart-5

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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