03 August 2012

Buy now while deals last

Unseasonably large price declines for a broad range of electronic components are creating a buying opportunity for purchasers, according to IHS iSuppli.
The market information specialist says prices for widely used components – including capacitors, crystals, filters, magnetics, oscillators and pcbs – are set to decrease more quickly than usual during the rest of the year.

"Electronic component pricing typically is stronger in the second half of the year," said Rick Pierson, principal analyst, semiconductor pricing, for IHS. "However, prices are weak this year because of a global economic malaise. 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 pricing trend is illustrated by voltage controlled crystal oscillators, whose price is set to decline by 2% in Q3, 2.4% in Q4 and 2.6% in Q1 of 2013. This compares to a normal quarterly price reductions of up to 2%.
While the price decline for oscillators may appear to be only slightly greater than normal, says Pierson, it is sufficient to raise eyebrows amongst procurement managers.
"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."
IHS predicts that component prices will continue to decline until the Q2 of 2013, when a rebound is expected.

Graham Pitcher

Supporting Information



This material is protected by Findlay Media copyright
See Terms and Conditions.
One-off usage is permitted but bulk copying is not.
For multiple copies contact the sales team.

Do you have any comments about this article?

Add your comments


Your comments/feedback may be edited prior to publishing. Not all entries will be published.
Please view our Terms and Conditions before leaving a comment.

Related Articles

Global semi sales climb 5%

Worldwide semiconductor revenue increased to $315billion last year, up 5% from ...

Sensor market back on track

Emerging markets such as the Internet of Things, wearable electronics and the ...

Rohm teams with imec

Rohm Semiconductor has joined imec's research programme to develop ultra low ...

BEEAs 2013 round up

The Grand Prix at this year's British Engineering Excellence Awards goes to the ...

More growth for 2014

When Findlay Media announced last year that it was tripling the size of the ...

Pushing to the front

Trying to divine the future – even things only a year out – is a risky ...

The real solution to fake parts

The high tech supply chain is more vulnerable to counterfeit components than ...

Electronics Sourcing LIVE 2014

15th May 2014, Stadium MK, Milton Keynes, UK

Electronics Design Show 2014

22nd-23rd October 2013, Jaguar Exhibition Hall, Ricoh Arena, Coventry, UK

Always innovating

Check out this brief video promo for an all new website that explores TI ...

Ask the Expert: Pekka Varis

How does the Keystone Network Coprocessor offload IPSec? Pekka is a visionary ...

First public demonstration of a live OpenVPX ...

Curtiss-Wright Controls Embedded Computing partnered with Hybricon to make ...

Will designers have a choice?

The distribution sector is shrinking rapidly. But it's not the revenues, it's ...

$60million well spent?

The fate of MIPS Technologies has been the subject of rumours for several ...

Archive: New Electronics 1972

The electronics news stories making the pages of New Electronics 40 years ago ...

Sarah Macken, ESCO Council

ESCO's new chief executive tells Graham Pitcher that the electronic systems ...

John Richards, Oxford Digital

As the 2014 British Engineering Excellence Awards (BEEAs) programme launches, ...

Julian David, techUK chief

Graham Pitcher hears from techUK's chief executive about how the organisation ...