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Contributor:
Michael Schwert
Michael is the founder of Cumulus, Inc. He has more than 20 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.( More... )
Cumulus provides market information and consulting services for the global electronic components indusry. 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.
Switch Update for Q1 2012
07.18.2012 // Posted by: Michael Schwert // Posted in: Articles, Switches & Relays
Statements of fact and or opinions expressed in MarketEye by its contributors are the responsibility of the authors alone and do not imply an opinion of the officers or the representatives of TTI, Inc.
Total reported sales for all switch categories in North America for Q1’12 were 10% higher than reported in the previous quarter and 3% more than the first quarter of 2011. Sales units for Q1’12 were 11% more in Q4’11 and 9% higher in Q1 last year.
The total booking dollars reported for all switch types in North America for Q1’12 came in 1% more than last quarter and below the Q1’11 total by 11%. The first quarter’s book-to-bill ratio for dollars was 1.026. Booking units in Q1’12 were down 5% from Q’4. The first quarter’s book-to-bill ratio for units was 0.815.
The first quarter versus the fourth showed total sales dollars up 10% and units grew 11%. All but slide dollars, along with, rocker and slide units experienced increases. Four of eight switch categories realized lower prices and the total ASP fell by 1%. The comparison to the first quarter of last year yielded similar results dollars up in five of eight categories and 3% in total. Units were down for five categories but up in total by 9% on the strength of tact switches. Pricing from a year ago was up in five of eight categories but fell 4% overall.
Sales Growth by Switch Category
| Q1 Versus Q4 CY 2011 | Q1 2012 Versus Q1 2011 | |||||
| Category | Dollars | Units | ASP | Dollars | Units | ASP |
| DIP | 10.40% | 14.20% | -3.40% | -16.80% | -20.50% | 4.60% |
| Keylock | 12.10% | 10.70% | 1.20% | -9.90% | -27.80% | 24.90% |
| Push Button | 0.10% | 14.00% | -12.20% | -17.00% | -3.90% | -13.60% |
| Rocker | 7.90% | -2.10% | 10.20% | 6.10% | -4.10% | 10.60% |
| Slide | -15.00% | -17.30% | 2.70% | 8.20% | 31.70% | -17.80% |
| Snap Action | 14.30% | 7.20% | 6.70% | 6.10% | -11.90% | 20.40% |
| Tact | 5.20% | 13.30% | -7.10% | 24.40% | 26.90% | -2.00% |
| Toggle | 12.90% | 23.40% | -8.50% | 2.40% | 1.60% | 0.80% |
| Total | 10.40% | 11.30% | -0.70% | 2.60% | 9.10% | -6.00% |
When compared to last quarter total booking dollars increased 1% and units fell 5%. Dollars and units were up in five catgories. Booked prices were up for half of the categories and in total by 7%. Booked dollars and units in Q1 against a year ago were down for all categories. In total, dollars fell 11% with units down 17%. Prices showed six of the eight categories increasing and the total moved 7% higher.
Bookings Growth by Switch Category
| Q1 Versus Q4 CY 2011 | Q1 2012 Versus Q1 2011 | |||||
| Category | Dollars | Units | ABP | Dollars | Units | ABP |
| DIP | 2.80% | 19.90% | -14.30% | -27.80% | -27.80% | 0.00% |
| Keylock | 41.50% | 43.10% | -1.10% | -31.50% | -32.10% | 0.90% |
| Push Button | 16.80% | 3.60% | 12.80% | -3.90% | -5.30% | 1.50% |
| Rocker | 6.40% | 6.10% | 0.30% | -2.40% | -16.20% | 16.40% |
| Slide | -3.60% | -6.30% | 2.90% | -22.50% | -11.60% | -12.30% |
| Snap Action | -6.10% | -1.20% | -5.00% | -10.20% | -12.50% | 2.60% |
| Tact | -6.40% | -15.70% | 11.00% | -14.10% | -21.50% | 9.50% |
| Toggle | 3.10% | 17.90% | -12.50% | -15.20% | -1.90% | -13.60% |
| Total | 1.10% | -5.50% | 7.00% | -11.20% | -17.20% | 7.30% |
The graph below shows total quarterly indexed sales and bookings in dollars and units for the reported data since Q1 CY 2010. All measures but booked units improved in Q2 of 2010. 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. Sales continued lower in Q4 while booking dollars jumped. Q1 of this year saw improvement in all but booked units. The second graph of indexed sales shows all sales and booking metrics were are at the lowest levels recorded by Switch Tracks in Q1’09 and second lowest in Q3 then improved nicely in Q4 and Q1. In Q3’11 booking measures fell to be near these 2009 levels.
Book-to-bill units have generally trended lower from Q4 of 2009, then jumped back above 1.0 in Q1’11, fell the next two quarters, then improved in Q4. Book-to-bill dollars have shown a similar trend with more amplitude. The booking to selling price ratio had been trending lower until Q4 of last year.
Indexed booking prices generally trended higher to a peak Q1’11, fell in Q2 and Q3, and jumped back up in Q4 and Q1 of this year. Selling prices have followed a similar but slightly lower path until Q2’11 when booking prices moved below it. In Q4 and Q1booking price is again above selling. The second price graph shows prices indexed since Q1 of 2003 and both the selling and book prices have risen from an all-time low set in Q3 of 2009. Booking prices have increased to the highest level ever recorded.
