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.

Author
Graham Pitcher

Supporting Information

Websites
http://www.isuppli.com/Manufacturing-and-Pricing/News/Pages/Electronic-Component-Price-Declines-Spur-Buying-Opportunity.aspx

Companies
iSuppli

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