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
Hydrogen power enters the call center
May 23, 2013
A UK startup has had significant success with its hydrogen-powered power system as an uninterruptible power supply for call ...
Brussels Calling: Qualcomm wins in a wasteful industry
Europe in 10 billion € bid to boost chip industry
Nujira surpasses own world record for ET PA linearity
Silica moves to fast lane in Europe's LED market
Intel's new CEO shakes things up
May 23, 2013
Newly minted Intel Corp. CEO Brian Krzanich wasted little time putting his stamp on the company he has worked for for more ...
Wide-angle lens is less than 3mm high for the same diameter
Low-power wireless projected to make waves in remote controls according to IMS Research
Intel pushes for more research beyond 10-nm
InterviewSilica moves to fast lane in Europe's LED market
In the booming market for LED lighting, electronics distributor Silica intends to lead the pack by offering technological excellence at application level. The company is currently planning to offer tailor-made ...
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
The development platform for i.MX 6Quad from element14 (built to the Freescale SABRE Lite design) is an evaluation platform featuring the powerful i.MX 6Q, a multimedia application processor with Quad ARM Cortex-A9 cores at 1.2 GHz from Freescale Semiconductor.
This month, Freescale and element14 are giving away five such platforms, worth £128.06 each, for EETimes Europe's readers to win. The platform helps evaluate the rich set of peripherals and includes a 10/100/Gb Ethernet port, SATA-II, HDMI v1.4, LVDS, parallel RGB interface, touch screen interface, analog headphone/microphone, micro TF and SD card interface, USB, serial port, JTAG, camera interface, and input keys for Android.
And the winners are...
In our previous reader offer, Pico Technology was giving away one of its recently launched PicoScope 3207B, a 2-channel USB 3.0 oscilloscope worth 1451 Euros. Lucky winner Mr L. Sanchez-Gonzalez from Spain should be receiving his PicoScope 3207B soon. Let's wish them some interesting findings with his 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.