North American Switch Market Sales Rose 2% and Bookings Up 3% for the First Half of 2017 Versus 2016

Total reported sales for all switch categories in North America for Q2 of 2017 were 8% above the previous quarter and 2% better than observed in the second quarter of 2016. Sales units for Q2 2017 came in 8% more than units sold in Q1 2017 and 9% above Q2 of 2016.

The total booking dollars reported for all switch categories in North America for Q2 2017 ran 3% more than the previous quarter and 4% higher than Q2 2016. The first quarter’s book-to-bill ratio for dollars was 0.990. Booking units in Q2 2017 were 8% above Q1. The first quarter’s book-to-bill ratio for units was 0.864.

The second quarter versus the first shows total sales dollars up 8% on the strength of the majority of categories. Units were also up for the majority categories and increased 8% in total. Prices were down less 1% in total with five of eight categories improving. The comparison to the second quarter of 2016 has dollars and units increasing 2% and 8%. Over half the categories saw dollars increase. Units were higher for most categories. Pricing from a year ago down for all but rockers and lower in total by 6%. Year to date 2017 versus 2016 shows total dollars up 2% and 6% for units. Selling was down 4% as all but rocker switches lost ground.

Sales Growth by Switch Category

When compared to last quarter total booking dollars rose 3% and units were up 6% with the majority of categories increasing. Booked prices were down almost 3% in total with increases in half of the categories. Booked dollars and units, and booking price in Q2 against the same quarter of 2016 were up 4% and 8% respectively on the strength of snap action and rocker types. The average booking prices were down almost 4% with losses in all but DIP switches. Compared to last year to date, booking dollars rose almost 3% as half of the switch categories increased. Units increase over 5% with the majority of categories seeing increases. Booking prices were down across almost all the categories and 3% in total.

Bookings Growth by Switch Categories

The graph below shows total quarterly indexed sales and bookings in dollars and units for the reported data since Q2 CY 2015. Both dollars and units improved in in Q2 and Q3 of 2015 then fell sharply in Q4. Both improved the first two quarters of 2016 then fell in Q3 and Q4 then recovered in the first half of this year. Booking units general improved until Q3 and Q4of last year but regained in Q1 and Q2 of this year. Booked dollars picked up in the first half 2016, fell in Q3 and Q4, and came strong in this year. The second graph of indexed sales shows sales units are at decade highs.

Book-to-bill units have been 1.0 for 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 been well above 1.0 for the period.

Indexed booking prices general increased to a peak in the first half of 2015 and fell the last seven quarters. Indexed selling prices improved until the start of 2015 and have generally declined since. The indexed selling price is at a Switch Tracks all-time low as shown in the second graph below.