International Distribution of Electronics Association (IDEA) releases consolidated Q4 ‘07 European Electronic Components Distributor Total Available Market (DTAM) figures
The International Distribution of Electronics Association (IDEA) has released its European DTAM (Distributor Total Available Market) figures for Q4 ’07. According to Adam Fletcher, Vice President – IDEA the European electronic component DTAM continued to trend down in Q4 ’07, declining further than previously forecast of a ‘flat quarter’: However, the all important Book-to-Bill ratio improved slightly in Q4 to 1.05:1 suggesting that Q1’08 is likely to return to growth. ‘Q1 has historically been the leading growth quarter in Europe, however global economic forecasts suggest that overall economic activity is likely to decline, which may impact electronic component markets and restrict growth in 2008’, Adam Fletcher commented.
Bookings
Total European Distribution Bookings (Net Sales Orders Entered) in Q4 2007 increased by 2.1% when compared to Q3 2007 but declined by (4.8%) when compared to the same period last year.
Sector specific Bookings changes in Q4 2007 compared to the previous quarter were: Semiconductors declined by (0.5%); Passives increased by 3.8%; whilst Electro-mechs and Other Components increased by 5.8%.
Billings
Total European Distribution Billings (Net Sales Invoiced less Credits) in Q4 2007 declined by (5.2%), when compared to Q3 2007 and declined by (7%) when compared to the same period last year.
Sector specific Billings changes in Q4 2007 compared to the previous quarter were: Semiconductor declined by (6%); Passives declined by (4.7%); Electro-mechs and Other Components declined by (2.9%).
In 2007 semiconductors billings (net sales invoiced less credits) declined by (5.8%), with passives declining by (2.4%). We believe that much of this decline was the result of continued average selling price (ASP) erosion whilst the number of units shipped remained stable. Electromechanical component billings increased by 3% over the same period.
‘The ASP erosion in the semiconductor and passive component markets is mainly the result of intense competition between manufacturers who are attempting to maintain their market share in a declining market’, said Adam Fletcher ‘Interestingly pricing in the electro-mechanical market is stable or increasing primarily due to the rising cost of raw materials particularly precious metals…’.