European Switch Market Ends 2015 with Sales 1% Higher and Bookings 1% Lower than 2014

Total reported sales for all switch categories in Europe for Q4 of 2015 were 9% below the previous quarter and 2% lower than the fourth quarter of 2014. Sales units for Q4 2015 totaled 131.2 M ran 10% less than units sold in Q3 and about 1% less than Q4 2014.

The total booking euros reported for all switch categories in Europe for Q4 2015 came in 1% less than the previous quarter and above Q4 2014 3%. The fourth quarter’s book-to-bill ratio for euros was 0.969. Booking units in Q4 2015 were 7% more than Q3. The fourth quarter’s book-to-bill ratio for units was 0.993.

The fourth quarter versus the third shows lower euros for seven of eight categories. In total euros were down over 9% and units lower by more than 10% with all categories decreasing. The average selling prices (ASP) decreased in four of the eight categories and were up 2% in total. Q4 compared to a year ago shows loses in euros for five of eight categories and a 2% decline in total. Units were up for three categories and down less than 2% in total. ASPs decreased for the majority of the eight categories but down less than 1% in total. Year to date euros and units were up 1% with all but DIP and rocker improving. The ASP was unchanged despite losses in four of eight categories.

chart1

When compared to the third quarter, total bookings were down in euros for five of eight categories and in total euros slipped 1%. Units rose over 6% despite losses in over half of the categories. The average booking price fell for five categories and 7% in total. Results compared to last year have euros and units increasing in five or four categories and 3% in total. The average booking was nearly unchanged. Year to date booking euros and units are down 1% and 2% on mixed category results. Booking price rose less than 2% and for over half of the eight categories.

chart2

The graph below shows total quarterly indexed sales and bookings in euros and units for the reported data since Q4 CY 2013. Q4 of 2013 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 and Q4.

chart3

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 period. The ABP-to-ASP ratio has been above 1.0 for three of the nine quarters.

chart4

For the period, indexed booking prices generally trended higher. Indexed selling prices were generally increasing until the last few quarters.

chart5

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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