Total reported sales for all switch categories in North America for Q2 of 2016 were 7% above the previous quarter and 8% higher than the second quarter of 2015. Sales units for Q2 2016 ran 3% better than Q1 and 18% more than Q2 of 2015.

The total booking dollars reported for all switch categories in North America for Q2 2016 came in 1% better than the previous quarter and above Q2 2015’s total bookings by 14%. The fourth quarter’s book-to-bill ratio for dollars was 0.974. Booking units in Q2 2016 were 1% greater than Q1. The first quarter’s book-to-bill ratio for units was 0.871.

The second quarter versus the first showed total sales dollars up 7% and units 3% higher on the strength of the majority of categories. Prices were up almost 5% in total with all but two categories improving. The comparison to the second quarter of 2015 yielded similar results dollars up in five of eight categories and 8% in total. Units were up for most categories and jumped in total by over 17% due to tact switches. Pricing from a year ago was up in seven of eight categories but lower in total by 8% on a mix shift to lower priced categories. Year to date versus a year ago has dollars 5% higher in total driven by DIP and tact switches. All in, units jumped 19% driven by DIP and tact performance. The ASP dropped 12% with losses in five of six categories.


When compared to last quarter total booking dollars inched up 1%. Units were up in four of eight categories and 1% in total driven by keylock and toggle switches. Booked prices were unchanged in total with increases in the majority categories. Booked dollars in Q2 against the same quarter of 2015 were up for all categoies and in total by 14%. Units were also up for most categories and 11% in total. Prices were higher for most categories and 2% overall. Bookings year to date versus 2015 were up in total dollars and units. Dollars are up 10% and units 18% better. Booking price slipped 8% with over half the categories up and a mix shift to lower priced products.


The graph below shows total quarterly indexed sales and bookings in dollars and units for the reported data since Q2 CY 2014. Sales dollars remained flat and units dropped for the first four quarters of the period. Both dollars and units improved in in Q2 and Q3 of 2015 then fell sharply in Q4. Both have improved the last two quarters. Booking units general feel to a low in Q1 in 2015 and have improved since. Booked dollars were mainly flat, except for Q2 and Q4 of 2015, and then picked up in 2016.


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.


Indexed booking prices general increased to a peak in Q1 of 2015 and fell dramatically the last five quarters. Indexed selling prices improved until the start of 2015 and have generally declined the last six quarters and are now near a Switch Tracks all-time low as shown in the second graph below.


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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