Electronics Market: Another Month of Minimal Change in April
Lytica is the world’s only provider of electronic component spend analytics and risk intelligence using real customer data. As a result of our unique position in the marketplace, we’ve been able to work with 100+ customers in analyzing over $450 billion in electronics spend. We’ve curated up-to-date insights on the state of the electronic component market and will be sharing them with you each month.
Lytica’s basket of goods used in our analysis is comprised of 15,800 electronic components across more than 30 categories, consisting of the most popular devices used by our customers. These indices are intended to show trends in the market. Individual component and BoM analysis is offered by Lytica as a service to our customers.
Electronic Component Pricing Sees Third Straight Month of Decreases in April
April sees the third straight month of pricing decreases in 2024, with an overall decrease of 1.45%. In March, the market saw a minimal pricing decrease of 0.01%, prompting the question of whether prices were stabilizing. Could this price decrease in April signal further positive pricing trends for buyers into 2024? Or are the minimal pricing decreases a sign of stabilization compared to the large decreases seen in 2023?
The biggest drivers in this pricing readout include Resistor (down 4.71% Month-to-Month, following a 2.56% increase in February), Thermal Management (down 2.04% Month-to-Month), and Processor (down 1.95% Month-to-Month).
The commodities pushing upward against this trend include Optoelectronic (up 3.43% Month-to-Month), Wire & Cable (up 2.79% Month-to-Month following a previous decrease of 4.18% Month-to-Month) and Diode (up 1.80% Month-to-Month) among others.
Minimal Lead Time Decreases Continue in April
The trend of decreasing lead times persists into April, which is encouraging for buyers. However, the average lead time saw only a modest Month-to-Month decrease of 0.85%, slightly more than the 0.75% decrease noted in March, and 0.75% in February. While this does align with the ongoing pattern of decreasing lead times seen throughout 2023, the size of the decreases is consistently getting smaller. This further supports the notion that lead times may be nearing stabilization.
The decrease in lead times was driven largely again by Thermal Management (down 23.51% Month-to-Month, following a decrease of 13.17% Month-to-Month in March), Transistor (down 3.56% Month-to-Month), Diode (down 3.36% Month-to-Month), and Circuit Protection (down 2.82% Month-to-Month).
Those commodities pushing back on April’s trend included Wire & Cable (up 29.32% Month-to-Month), Semiconductor (up 7.93% Month-to-Month), and Relay & I/O Module (up 6.72% Month-to-Month).
Electronic Component Availability Remains at Highest Level in Over a Year
In April, electronic component availability was once again at 90% on average, with no change from March, and an increase from 87% of all tracked electronic components available in February 2024. This will come as a continued positive note for buyers, as this is the highest stock level recorded since before 2023 (the highest in 2023 being 89% in December).
Components leading the way from an availability perspective in April include Battery (at 100% available), Sensor and Switch (both at 97% available) and Circuit Protection and Display Assembly (both at 96% Available).
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