European Switch Market Starts 2016 with Sales and Bookings 10% Higher than Q4

Total reported sales for all switch categories in Europe for Q1 of 2016 were 10% above the previous quarter and 2% better than observed in the first quarter of 2015. Sales units for Q1 2016 were 13% more than units sold in Q4 and about 5% higher than Q1 2015.

The total booking euros reported for all switch categories in Europe for Q1 2016 ran 11% more than the previous quarter and below Q1 2015s total bookings by 2%. The first quarter’s book-to-bill ratio for euros was 0.972. Booking units in Q1 2015 jumped 16% more than Q4. The first quarter’s book-to-bill ratio for units was 1.015.

The first quarter versus the fourth shows higher euros and units for six or seven of eight categories. In total, euros were up over 10% and units rose by almost 13%. The average selling prices (ASP) decreased in four of the eight categories and were down 2% in total. Q1 compared to a year ago shows loses in euros for five of eight categories but up 2% in total on the strength of snap action and tact. Units were up for four categories and rose 5% in total. ASPs decreased for half of the eight categories and down just less than 3% in total.


When compared to the fourth quarter, total bookings were up in euros for six of eight categories and in total euros by 11%. Units rose nearly 16% with double digit growth in half of the types. The average booking price fell for five categories and just less than 5% in total. Results compared to last year have euros and units decreasing in four categories. In total, euros fell 2% while units increased 9% on strength in snap action and tact categories. The average booking was down 10% with over half the categories decreasing.


The graph below shows total quarterly indexed sales and bookings in euros and units for the reported data since Q1 CY 2014. 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 and Q4. Q1 of this year produced a significant improvement in all metrics.


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 but improved a bit in the last two periods. The ABP-to-ASP ratio has been below 1.0 for six of the last nine quarters.


For the period, indexed booking and selling prices generally trended slightly lower.


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.

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