Electronic component price trend analysis

According to IHS iSuppli's component price trend tracking report, the poor economic situation is causing the prices of various electronic components to drop sharply, giving buyers a chance to buy in the near future.

Contrary to previous expectations, currently widely used component prices are bound to fall in the third and fourth quarters, including capacitors, crystals, filters, magnetics, oscillators, and printed circuit boards (PCBs).

The price of electronic components is usually stronger in the second half of each year, because suppliers will strategically increase prices to seize the opportunity for strong start-ups and holiday seasons. However, due to the deep crisis in Europe and the rapid slowdown in Chinese manufacturing, this year's price performance has been weak. Although the overall semiconductor revenue is expected to increase in the second half of the year, the prices of many special components have accelerated, responding to dim economic data.

Electronic components This is quite different from the outlook earlier this year when it appeared that the prices of many component categories will increase. This unsatisfactory price trend is reflected in the oscillator body, which is a high-volume component widely used in watches, laptops, mobile phones and other electronic products. In particular, the price of voltage-controlled crystal oscillators (VCXOs) is expected to decline by 2.0% in the third quarter, down by 2.4% in the fourth quarter and 2.6% in the first quarter of 2013, as shown in the figure. In the usual case, its quarterly price drop is 1.0-2.0%.

Although the price drop of the oscillator may be only slightly higher than normal, this decline is enough to cause the purchase managers to pay attention.

Buy it now, not lost. IHS iSuppli believes that prices are falling faster than expected and may be an opportunity to buy. Manufacturers should consider placing orders as soon as possible to purchase the required components. Especially at this stage, it is a good opportunity for those who buy on the bargain.

IHS iSuppli’s component price tracking forecasts that component prices will continue to decline until the second quarter of 2013 is expected to begin to rebound. Prices for capacitors, crystals, filters, magnetics, PCBs, and oscillators are expected to increase in the second quarter of 2013. In particular, the price of the TCXO oscillator is expected to increase by 2.7% during the quarter.

Steady semiconductor trends Although prices have fallen more than normal, the global semiconductor industry growth in the second half is expected to be stronger than in the first half of the year. After falling 3.3% in the first quarter and 5.4% in the second quarter, global semiconductor operating revenue is expected to increase by 8.7% in the third quarter and 1.0% in the fourth quarter.