01.04.2012 // Posted by: Michael Schwert // Posted in: Articles, Switches & Relays

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Switch Market Sales Down 4% and Booking Off 8% Compared to 2010

Total reported sales for all switch categories in North America for Q3 of 2011 were 14% lower than reported in the previous quarter and 14% less than the third quarter of 2010. Sales units for Q3 2011 ran 18% less than Q2 2011 and 19% fewer than Q3 of last year.

The total booking dollars reported for all switch categories in North America for Q3 2011 were 27% less than last quarter and below Q3 2011’s total bookings by 27%. The third quarter’s book-to-bill ratio for dollars was 0.821. Booking units in Q3 2011 came in down 25% from Q2. The third quarter’s book-to-bill ratio for units was 0.899.

The third quarter versus the second showed total sales down up 14% and units dropped 18%. All but push button and rocker experienced decline in dollars and/or units. Two of eight switch categories realized lower prices, and the total ASP rose by 5%. The comparison to the third quarter of last year yielded similar results dollars down in six of eight categories and 14% total. Units were down for all categories and 19% in total. Pricing from a year ago was up in five of eight types and 6% overall. Year to date dollars are down 4% in total with over half the categories declining. Units are down almost 13% with the majority of categories losing ground. The ASP is up over 10% in total with toggle’s having the only decrease.

Sales Growth By Switch Category

	Q3 2011 Versus Q2 2011			Q3 2011 Versus Q3 2010			YTD CY2011 Versus YTD CY 20109
Category	Dollars	Units	ASP	Dollars	Units	ASP	Dollars	Units	ASP
DIP	-33.79%	-41.5%	13.3%	-27.1%	-36.5%	15.4	-9.9%	-13.2%	3.7%
Keylock	-38.6%	-40.4%	3.1%	-22.7%	-10.4%	-13.7%	15.3 %	8.6%	6.2%
Push Button	-3.6%	0.9%	-4.5%	-3.3%	-22.9%	25.3%	4.1%	-24.9%	38.7%
Rocker	4.1%	-16.8%	25.1%	1.4%	-38.1%	63.9%	-6.1%	-26.4%	27.7%
Slide	-27.5%	-18.0%	-11.6%	-33.5%	-28.3%	-7.3%	-16.6%	-17.7%	1.3%
Snap Action	-21.5%	-29.8%	11.9%	-25.5%	-32.9%	11.0%	-8.1%	-10.8%	3.0%
Tact	-5.7%	-10.4%	5.3%	0.1%	-7.5%	8.3%	-7.1%	-14.5%	11.8%
Toggle	-3.1%	-6.8%	4.1%	-5.8%	-2.0%	-3.9%	13.8%	21.9 %	-6.6%
Total	-13.6%	-18.1%	5.5%	-14.1%	-19.1%	6.2%	-3.8%	-12.8%	10.3%

When compared to last quarter total booking dollars decreased 27% and units fell 25%. Dollars and units were down in all categories. Booked prices were down in only two types and over 3% in total as the product mix shifted to lower priced switches. Booked dollars in Q3 against a year ago were lower in all types except tact switches. Total dollars were down 27% and units were down nearly 20%. Prices showed three of the eight types decreasing and the total moved 9% lower, again on mix shift. Year to date booking dollars declined 8%. Total units fell 11% with losses in six of eight categories while prices improved 4% with the opposite mix.

Bookings Growth By Switch Category

	Q3 2011 Versus Q2 2011			Q3 2011 Versus Q3 2010			YTD CY2011 Versus YTD CY 2010
Category	Dollars	Units	ABP	Dollars	Units	ABP	Dollars	Units	ABP
DIP	-60.5%	-63.9%	9.5%	-42.9%	-52.1%	19.1%	-15.8%	-18.7%	3.6%
Keylock	-54.9%	-73.2%	68.4 %	-29.6%	-44.7%	27.3%	17.4%	12.1%	4.7%
Push Button	-5.6%	-6.8%	1.3%	-23.3%	-21.9%	-1.8%	-16.0%	-25.9%	13.3%
Rocker	-24.0%	-33.1%	13.6%	-20.9%	-50.9%	61.0%	-0.5%	-28.9%	40.0%
Slide	-51.6%	-42.9%	-15.2%	-33.9%	-30.6%	-4.7%	-9.7%	-13.5%	4.5%
Snap Action	-27.3%	-18.9%	-10.3%	-37.2%	-18.0%	-23.5%	-13.3%	-10.9%	-2.7%
Tact	-6.8%	-19.1%	15.3%	2.8%	-11.7%	16.5%	-8.3%	-8.1%	-2.5%
Toggle	-15.6%	-20.8%	6.6%	-14.9%	-21.1%	7.7%	7.4%	8.2%	-0.8%
Total	-26.9%	-24.8%	-2.8%	-26.9%	-19.7%	-9.0%	-7.7%	-11.2%	3.9%

The graph below shows total quarterly indexed sales and bookings in dollars and units for the reported data since Q3 CY 2009. All measures but booked units improved in Q4 of 2009 and more so in Q1 of last year. The improvement continued for all but booked units in Q2. Sales dollars improved in Q3 while the other three metrics moved down. All measures were lower in Q4 followed by improved bookings in Q1 with flat sales dollars and lower units. All but booked dollars improved in Q2 then all measures dropped sharply in Q3. The second graph of indexed sales shows all sales and booking metrics were are at the lowest levels recorded by Switch Tracks in Q1 of 2009 and second lowest in Q3 then improved nicely in Q4 and Q1. In Q3 booking measures fell to be near these 2009 levels.

Book-to-bill units have generally trended lower from Q3 of 2009, then jumped back above 1.0 in Q1 of this year, and fell the next two quarters. Book-to-bill dollars have trended higher from a low in Q4 of 2008 to peak in Q1 of last year and fell below 1.0 in Q3 but bounced to a two year high in Q1 only to fall back again the last two periods. The booking to selling price ratio has also trended below 1.0.

Booking prices generally trended higher to a peak Q1 of this year and have fallen since. Selling prices have followed a similar but slightly higher path until Q1 of 2010 when booking prices rose above it. In Q3 selling price is again above booking. The second price graph shows prices indexed since Q1 of 2003 and both the selling and book prices have risen from all time lows set in Q3 of 2009. Booking prices have fallen off their best level since Q1 of 2007.