Electronic component price declines spur buying opportunity, says IHS iSuppli
August 03, 2012 // Julien Happich
Economic troubles are spurring unseasonably large price declines for a broad range of electronic parts, creating a near-term buying opportunity for purchasers.
According to an IHS iSuppli Component Price Tracker report from information and analytics provider IHS, pricing for widely used components including capacitors, crystals, filters, magnetics, oscillators and printed circuit boards (PCBs) all are set to decline at above-average rates in the third and fourth quarters.
“Electronic component pricing typically is stronger in the second half of the year, as suppliers strategically boost prices to take advantage of strong demand during the back-to-school and holiday build seasons,” said Rick Pierson, principal analyst, semiconductor pricing, for IHS. “However, prices are weak this year because of a global economic malaise due to the crisis in Europe and a rapid slowdown of manufacturing in China. Although overall semiconductor revenue is expected to rise in the second half, pricing for many specific components is falling at a faster rate in reaction to poor economic news.”
The weakness represents a sharp reversal in the outlook compared to earlier this year, when it appeared that pricing was set to rise for many component categories.
The discouraging pricing trend is illustrated by oscillators, which are high-volume devices extensively used in electronic products ranging from wristwatches, to notebook PCs, to mobile phones. Pricing for voltage-controlled crystal oscillator (VCXO) oscillators is set to decline by 2.0 percent in the third quarter, by 2.4 percent in the fourth quarter and by 2.6 percent in the first quarter of 2013, as presented in the figure attached. This compares to a normal quarterly price reductions of 1.0 to 2.0 percent.
While the price decline for oscillators may appear to be only slightly greater than normal, this excess rate of decrease is sufficient to raise eyebrows among procurement managers, Pierson observed.
The faster-than-expected declines in pricing could represent a buying opportunity.
“Those companies that were not planning on buying right now should consider bringing in their orders and purchasing parts sooner rather than later,” Pierson said. “This represents a prime opportunity for bargain hunters.”
The IHS iSuppli Component Price Tracker Service predicts that pricing for the components will continue to decline until the second quarter of 2013, when a rebound is expected to commence. Prices for capacitors, crystals, filters, magnetics, PCBs and oscillators all are expected to increase during the second quarter of 2013.
In particular, pricing for TCXO oscillators is expected to rise by 2.7 percent during the period.
Semis going steady
Despite the above-normal price declines, the global semiconductor industry is set for stronger growth in the second half compared to the first. After declining by 3.3 percent in the first quarter and rising by 5.4 percent in the second quarter, global semiconductor revenue is expected to increase by 8.7 percent sequentially in the third quarter, before settling down to 1.0 percent growth in the fourth quarter.
Visit IHS at www.ihs.comAll news
Bosch suggests cars to coast for fuel efficiency
December 11, 2013
With a package of relatively simple but coordinated measures, cars can raise their fuel efficiency. Automotive supplier Bosch ...
Europe is giving up on leading edge digital chip design
Design-free RF-based wireless charging redefines user experience
Electromobility, Formula One and the Fatal Consequences of Bad Software Design: The top ten stories of 2013
Brushless DC servo motors integrate field-oriented closed-loop servo control
How green is your code?
December 11, 2013
Mid-November, French technology cluster Images & Réseaux was holding a one-day presentation of start-up companies at Rennes’ ...
Chinese LED lighting market to more than double to $7.4 billion in 2017, forecasts Lux Research
80V Wide Range I2C Power Monitor Simplifies Challenging System
CUI launches complete range of free 3D power supply models to speed power supply design
- 3mm × 3mm QFN IC Directly Monitors 0V to 80V Supplies
- UltraCMOS® Semiconductor Technology Platforms: A Rapid Advancement of Process & Manufacturing
- Adaptive Cell Converter Topology Enables Constant Efficiency in PFC Applications
- Isolated 4-Channel, Thermocouple/RTD Temperature Measurement System with 0.5°C Accuracy
InterviewPerformance monitoring solution helps provide intelligent control of high power systems
A performance monitoring solution designed to enable companies to monitor high power IGBT module systems in locomotive, wind turbine, High Voltage DC and industrial drive applications was unveiled this ...
Filter WizardCheck out the Filter Wizard Series of articles by Filter Guru Kendall Castor-Perry which provide invaluable practical Analog Design guidelines.
Linear video channel
READER OFFERRead more
Internet of Things (IoT) manufacturer Ciseco has launched the Raspberry Pi ‘Wireless Inventors Kit’ (RasWIK), featuring 88 pieces to provide everything a Pi owner needs to follow a series of step-by-step projects or to create their own wireless devices, without the need for configuration or even writing code.
RasWIK has been designed to be highly accessible, demystifying the dark art of wireless and enabling anyone with basic computing skills to begin building wireless devices with a Raspberry Pi. You can create anything from a simple traffic light, to a battery monitor, or even a temperature gauge that sends data to the Xively IoT cloud so billions can access the data.This month, Ciseco is giving away twelve Raspberry Pi Wireless Inventors kits, worth £49.99 each for EETimes Europe's readers to win.
And the winners are...
In our previous reader offer, Farsens was giving away five kits for EEtimes Europe readers to evaluate its FenixVortex, Kineo and X1 wireless, battery free sensor tags.
Lucky winners include Mr A. Neil from the UK, Mr. E. Delvaux from Belgium, Mr Lengal from the Czech Republic, Mr H. Bijlsma from the Netherlands, and Mr G. Pfaff from Germany. All should be receiving their packages soon. Lets wish them some interesting findings with their projects.
December 15, 2011 | Texas instruments | 222901974
Unique Ser/Des technology supports encrypted video and audio content with full duplex bi-directional control channel over a single wire interface.