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Global pricing for commodity electronic components in on the rise
Average global pricing for commodity electronic components in on the rise by as much as 2.3 percent, according to iSuppli Corp. Following declines in each of the last three quarters, the SMT pricing market is set to take a sharp incline that will increase earned revenues to $2,498.5 million by 2015 (Frost & Sullivan).
"The strategic focus of SMT placement equipment manufacturers has increasingly been on producing flexible machines that cater to the unpredictable volume and scenarios of electronic assemblers," Frost and Sullivan told evertiq.com. "This approach would help them fully utilize their existing installed capacity."
SMT equipment has been one of the worst segments affected by the global economic slow down resulting in fewer buyers and an intensifying competitive battle between existing SMT market participants. This competitive battle led the SMT market into a stage of oversupply that was nearly disastrous for global SMT manufacturers. Since 2001, SMT prices have declined rapidly because the heavy imbalance of supply and demand was causing manufactures and SMT equipment providers to decrease prices and even offer attractive packages leading to a sharp decline in revenue. After seeing a slump in demand from a decline in capital equipment purchasing, the SMT market is set to focus on specific segments of the market less affected by the economic slow down than other areas of the economic spectrum.
While SMT manufacturers gravitate towards a more flexible segment of the market, consumers will be increasingly looking for more flexible technology therefore increasing overall SMT prices. With new, competitive forms of interface technology emerging, market ratings should be moving into the positive in 2010 and beyond. Manufacturers are being forced to listen to what the market is looking for and how they can relate to consumer concerns. In return, they will create more efficient, cost-effective products to get back the revenue lost through the end of the last decade as demand skyrockets for newer products that consume less and provide more.
"Introducing innovative products to cater to the changing demands of electronics manufacturers will be the key to survival in the current [economic] situation," Frost and Sullivan told evertiq.com. "Offering value-added features will be critical to overcoming the economic slowdown."
"The strategic focus of SMT placement equipment manufacturers has increasingly been on producing flexible machines that cater to the unpredictable volume and scenarios of electronic assemblers," Frost and Sullivan told evertiq.com. "This approach would help them fully utilize their existing installed capacity."
SMT equipment has been one of the worst segments affected by the global economic slow down resulting in fewer buyers and an intensifying competitive battle between existing SMT market participants. This competitive battle led the SMT market into a stage of oversupply that was nearly disastrous for global SMT manufacturers. Since 2001, SMT prices have declined rapidly because the heavy imbalance of supply and demand was causing manufactures and SMT equipment providers to decrease prices and even offer attractive packages leading to a sharp decline in revenue. After seeing a slump in demand from a decline in capital equipment purchasing, the SMT market is set to focus on specific segments of the market less affected by the economic slow down than other areas of the economic spectrum.
While SMT manufacturers gravitate towards a more flexible segment of the market, consumers will be increasingly looking for more flexible technology therefore increasing overall SMT prices. With new, competitive forms of interface technology emerging, market ratings should be moving into the positive in 2010 and beyond. Manufacturers are being forced to listen to what the market is looking for and how they can relate to consumer concerns. In return, they will create more efficient, cost-effective products to get back the revenue lost through the end of the last decade as demand skyrockets for newer products that consume less and provide more.
"Introducing innovative products to cater to the changing demands of electronics manufacturers will be the key to survival in the current [economic] situation," Frost and Sullivan told evertiq.com. "Offering value-added features will be critical to overcoming the economic slowdown."