Passives unit shipments rise, tags drop: the passives market will likely have flat growth for the year despite double-digit increases in unit shipments.(passives report)

Purchasing, September, 2003 by Roos, Gina

Although unit volume shipments are increasing for passive components particularly for capacitors and resistors, aggressive price declines are offsetting potential revenue gains and are eroding margins. Passive component suppliers say they've experienced about 14 consecutive quarters of price decreases and the trend continues in that direction.

Although the rate of decline has slowed, it's not inconceivable to see prices continue to decrease about 3-5% per quarter depending on the commodity, suppliers say. Unit shipments have increased consistently each quarter about 8-10%, while tags have dropped about 4-5%, says John Warner, vice president of communications and strategic planning for Kemet Corp. The net result is flat growth, says Glyndwr Smith,...

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