After more than a year of increases, prices for discrete components used in nearly all electronic products are set to begin to decline in the first quarter of 2011 as demand softens during the seasonally slow period, according to the market research firm, iSuppli Corp.
“Across the board, discrete components—including bipolar power, power MOSFETS, small signal and rectifiers—are forecasted to decline in price during the first quarter of 2011,” said Rick Pierson, senior analyst at iSuppli Corp. “While such drops—amounting to less than 1 percent for all discretes—won’t come close to offsetting the gradual increases that have happened since October 2009, the price reductions at the very least will give buyers some relief from demand outpacing supply.”
However, for the remainder of 2010, Average Selling Prices (ASPs) for all discretes are expected to continue to move upward until supply comes into balance with the heavy demand situation. Furthermore, even when discrete prices begin to decline in the first quarter, buyers may still have some challenges obtaining parts. Delivery lead times for these discretes will continue to extend well beyond normal parameters, maybe by as much as 20 weeks or more in some cases.