IC industry chain is overstocked, how do distributors deal with excess components?

Market research agency Canalys data show that in the second quarter of 2023, global smartphone shipments were 258 million units, down 10% year-on-year, six consecutive quarters of decline.The PC market is similar to the mobile phone, TrendForce statistics show that the second quarter of the global laptop shipments of 40.45 million units, a year-on-year decline of 11.6%.


From the second quarter of consumer electronics data can be seen, demand recovery is not as expected. The next major work of the electronics industry chain will be to go to inventory, for the majority of manufacturers, the test of the downturn will continue, the competition will be the toughness of each.


Thinking back just a year ago, the majority of manufacturers are still for the “lack of electronic components” and worry, even if you pay a high cost, but also to get together the key materials missing on the PCB. And those previously prepared, for the production of electronic components, have become surplus inventory, and urgently need to be exchanged for the continuation of the survival of the funds.


In day-to-day operations, manufacturers generate a certain amount of excess inventory as a result of project balances, changes in customer programmes, and even demand miscalculations. The negative impact of these excess inventories is usually within the control of the enterprise. In terms of disposal, they are generally sold to component distributor in the market at a lower price. For example, CSD17577Q3A, the sale of components is often a matter of “chance”, the right price, a smooth transaction process, etc., are not to be found. Over time, the terminal enterprises to deal with excess inventory, often lack of a sense of urgency, and even allow it to occupy their own valuable storage space and funds.

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