European Switch Market Starts 2015 with Sales 4% Higher and Bookings Unchanged from 2014
12/01/2015 //
European Switch Market Starts 2015 with Sales 4% Higher and Bookings Unchanged from 2014
Total reported sales for all switch categoris in Europe for Q2 of 2015 were 2% above the previous quarter and 6% better than the second quarter of 2014. Sales units for Q2 2015 came in 5% more than Q1 and 6% higher than Q2 2014.
The total booking euros reported for all switch categories in Europe for Q2 2015 ran 2% more than the previous quarter and above Q2 2014’s total bookings by 2%. The first quarter’s book-to-bill ratio for euros was 1.005. Booking units in Q2 2015 were 14% more than Q1. The first quarter’s book-to-bill ratio for units was 1.055.
The second quarter versus the first shows higher euros for three of eight categoris. In total euros were up over 2% and units higher by more than 5%. The average selling prices (ASP) decreased in two of the eight categories and were down almost 3% in total on a mix shift to lower priced switches. Q2 compared to a year ago shows gains in euros for five of eight categories and a 4% rise in total. Units were up 6% in total with increases in six of eight categories. ASP’s decreased for half of the eight categories and 1% in total. Year to date euros were up 4%. Units rose less in total with gains in seven of eight categories. The ASP was nearly unchanged despite losses in five of eight categories.
Sales Growth by Switch Category
| Q2 2015 Versus Q1 2015 | Q2 2015 Versus Q2 2014 | YTD 2015 Vs. YTD 2014 | |||||||
| Category | Euros | Units | ASP | Euros | Units | ASP | Euros | Units | ASP |
| DIP | -1.1% | -5.6% | 4.8% | -1.9% | -6.7% | 5.1% | -1.7% | 0.5% | -2.3% |
| Keylock | -11.1% | -26.6% | 21.1% | 2.4% | 10.4% | -7.2% | 10.2% | 38.9% | -20.9% |
| Push Button | 18.8% | 13.3% | 4.8% | 33.0% | 13.7% | 17.0% | 23.8% | 3.9% | 19.0% |
| Rocker | 0.2% | -18.8% | 23.4% | -1.1% | -18.5% | 21.3% | -1.5% | -10.5% | 10.0% |
| Slide | -1.5% | -0.9% | -0.6% | 13.3% | 7.3% | 5.6% | 12.8% | 9.2% | 3.3% |
| Snap Action | 3.2 % | -1.5% | 4.8 % | 2.4% | 6.3% | -3.7% | 2.7% | 3.5% | -0.9% |
| Tact | -2.8% | 5.3% | -7.6% | 2.4% | 7.4% | -4.7% | 1.2% | 6.3% | -4.9% |
| Toggle | -4.7% | -5.2% | 0.6% | -1.0 % | 7.2% | -7.7% | -2.5% | 20.3% | -19.9% |
| Total | 2.5% | 5.4% | -2.7% | 4.5% | 5.8% | -1.2% | 3.9% | 2.8% | 1.0% |
When compared to the first quarter total bookings were up in euros for four of eight categories and in total euros 2%. Units rose in same categories as euros but more robustly with a 14% gain. The average booking price fell for four categories and 10% in total. Results compared to last year have euros and units increasing in five categories and 2% and 8% in total. Year to date booking euros, units and price are nearly unchanged in total and varied by categories.
Bookings Growth by Switch Categories
| Q2 2015 Versus Q1 2015 | Q2 2015 Versus Q2 2014 | YTD 2015 Vs. YTD 2014 | |||||||
| Category | Euros | Units | ABP | Euros | Units | ABP | Euros | Units | ABP |
| DIP | 4.8% | 19.4% | -12.2% | -7.0% | -9.6% | 2.9% | -7.7% | -16.2% | 10.1% |
| Keylock | -2.5% | -15.1% | 14.8% | 10.3% | 7.7% | 2.5 % | 6.4% | 2.8% | 2.5% |
| Push Button | 10.3% | 17.8% | -6.4% | 52.1% | 37.3% | 10.7% | 40.1% | 31.5% | 6.3% |
| Rocker | -0.2% | -12.7% | 14.4% | -4.4% | -13.1% | 10.0% | -3.6% | -8.9% | 5.7% |
| Slide | 15.6% | 39.2% | -16.9% | 22.8% | 29.6% | -5.3% | 9.3% | 10.9% | -1.5% |
| Snap Action | -0.8% | -5.4% | 4.9% | -4.4% | -9.7% | 5.8% | -5.5% | -9.2% | 4.0% |
| Tact | 9.1% | 20.2% | -9.3% | 9.6% | 23.0% | -10.9% | 3.6% | 11.4% | -7.9% |
| Toggle | -0.5% | -14.7% | 16.7% | 19.2% | 25.8% | -5.3% | 4.5% | 16.4% | -10.5% |
| Total | 2.0% | 14.0% | -10.5% | 2.5% | 8.3% | -5.4% | 0.0% | 0.5% | -0.5% |
CY 2013/2015 Total Reported European Switch Sales & Bookings Indexed (Q1 2007 = 100)
Book-to-bill euros and units generally declined to a low in Q3 of 2013 improved the next two quarters only to move down through Q4 of 2014 then higher in Q1 of this year. The ABP-to-ASP ratio has been above 1.0 for four of the nine quarters shown but is trending lower.
CY 2013/2015 Total Reported European Switch Market Ratios
For the period, indexed booking prices generally trended lower. Indexed selling prices were generally below booking prices until the last quarter.
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.