Total reported sales euros for all switch categories in Europe for Q3 of 2015 were 1% below the previous quarter and 1% lower observed in the third quarter of 2014. Sales units for Q3 2015 ran 1% less than the units sold in Q2 and about 1% more than Q3 2014.

The total booking euros reported for all switch categories in Europe for Q3 2015 came in 12% less than the previous quarter and below Q3 2014 by 5%. The first quarter’s book-to-bill ratio for euros was 0.896. Booking units in Q3 2015 were 22% less than the Q2. The first quarter’s book-to-bill ratio for units was 0.831.

The third quarter versus the second shows lower euros for six of eight categories. In total euros were down over 1% and units lower by more than 1%. The average selling prices (ASP) decreased in five of the eight categories and were nearly unchanged in total. Q3 compared to a year ago shows loses in euros for five of eight categories and a 1% dip in total. Units were up less than 1% in total with increases in five of eight categories. ASPs decreased for the majority of the eight types and down 2% in total. Year to date euros and units were up 2% with all but DIP and rocker improving. The ASP was nearly unchanged despite losses in four of eight categories.

Sales Growth by Switch Category
  Q3 2015 Versus Q2 2015 Q3 2015 Versus Q3 2014 YTD 2015 Vs.
YTD 2014
Category Euros Units ASP Euros Units ASP Euros Units ASP
DIP -6.4% -4.4% -2.1% -38.2% -41.8% 6.2% -17.2% -18.3% 0.4%
Keylock 8.3% 3.6% 4.6% 13.4% 24.0% -8.6% 11.3% 34.0% -17.1%
Push Button -4.2% 2.9% -6.9% -2.0% -0.1% -2.0% 13.6% 2.5% 11.2%
Rocker -1.4% 22.3% -19.4% -1.6% 1.6% -3.1% -1.5% -6.5% 5.3%
Slide -11.8% -6.4% -5.8% -12.0% -9.5% -2.7% 3.9% 2.5% 1.4%
Snap Action -0.2% -0.5% 0.2% 4.4% 3.4% 0.9% 3.3% 3.5% -0.1%
Tact -1.6% -3.0% 1.5% -2.1% 6.5% -8.1% 0.1% 6.4% -5.9%
Toggle 6.5% 10.2% -3.3% 5.5% 25.3% 15.8% 0.1% 22.0% -27.3%
Total -1.3% -1.5% 0.2% -1.2% 0.5% -1.6% 2.1% 2.0% 0.1%

When compared to the second quarter, total bookings were down in euros for six of eight categories and in total euros fell 12%. Units also dropped but more robustly with a 22% lose. The average booking price rose for five categories and 13% in total. Results compared to last year has euros and units decreasing in five categories and 5% and 12% in total. The average booking price rose 8%. Year to date booking euros and units are down 2% and 4% on mixed categories results. Booking price rose 2% and for over half of the eight categories.

Bookings Growth by Switch Category
  Q3 2015 Versus Q2 2015 Q3 2015 Versus Q3 2014 YTD 2015 Vs.
YTD 2014
Category Euros Units ABP Euros Units ABP Euros Units ABP
DIP -27.6% -38.9% 18.5% -49.1% -52.8% 7.8% -24.4% -29.8% 8.2%
Keylock 8.3% 31.5% -17.6% -2.4% 29.0% -24.4 % 3.2% 11.3% -8.0%
Push Button -13.4% -20.2% 8.6% 4.3% -0.6% 4.9% 26.5% 19.8% 5.6%
Rocker 1.2% 17.4% -13.8% 4.3% 3.2% 1.0% -1.1% -5.0% 4.0%
Slide -24.7% -32.6% 11.7% -4.6% -20.4% 19.9% 4.9% -0.2% 4.7%
Snap Action -10.8% -14.6% 4.5% 3.7% -5.4% 9.7% -2.9% -8.1% 5.6%
Tact -12.6% -26.3% 18.5% -17.5% -10.7% -7.7% -4.6% 4.0% -8.3%
Toggle -5.3% 5.6% -10.3% 0.0% 22.5% -18.4% 3.0% 18.3% -20.3%

Total

-12.0% -22.4% 13.5% -5.2% -12.2% 8.0% -1.7% -3.6% 2.0%

The graph below shows total quarterly indexed sales and bookings in euros and units for the reported data since Q3 CY 2013. In the second quarter of 2013 sales improved slightly as bookings decreased followed by a decrease in all measures in Q3. Q4 saw sales decrease and bookings improve. In Q1 2014 all metrics were at or near two year highs and slipped back a bit in Q2. In Q3 sales improved as bookings slipped all measures finished 2014 lower. The first half of 2015 showed recovery then bookings dropped and sales inched lower in Q3.

graph1

Book-to-bill euros and units generally declined to a low in Q4 of 2014 improved the next two quarters only to move down in Q3 of 2015. The ABP-to-ASP ratio has been above 1.0 for four of the nine quarters. It is interesting to note the ratios in Q3 2015 are almost at the same values as Q3 2013.

CY 2013/2015 Total Reported European Switch Market Ratios
graph2

For the period, booking prices generally trended higher. Selling prices were generally increasing until the last two quarters.

CY 2013/2015 Total Reported European Switch Price Index (Q1 2007 = 100)
graph3

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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