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The Market for Capacitors and Resistors


The Market for Capacitors and Resistors

Some supplier may confused why we refuse to bid some resistor and capacitors list. This article is about the situation of China market, which may help some of you to understand.

Looking back at last round of price increase of capacitors, the supply and demand of passive components has become tight since the second half of last year, and reached its peak in March and April this year. People in the industry are optimistic about the capacitor market. But in fact, as early as July, some assembly factory workers found it is a little weird about the demand for the peak season from customer’s attitudes and orders. In addition, there are electronic downstream industries, passive component distributors, agents, assembly foundries and other clients troubled buy too much passive components inventory, and even foundry personnel must rush to the mainland factory to assist in the processing of warehouses by passive components problem.

Since the price and cost of the capacitor is higher than the resistors, everyone pays more attention to the price of the capacitor, but the market demand for the resistor is not less than the chip capacitor.

Resistors are also steadily falling after October, and some models have fallen by half in the most situation. It is understood that the main reason for the decline in capacitors and resistors is the fierce competition in the Chinese smart phone market in the first half of this year, with sales down 10% year-on-year. In addition to Huawei Honor’s growth of 32%, Xiaomi's growth rate of 18%, Huawei's brand growth rate of 2%, while other manufacturers' sales are negative growth, Capacitors and resistors may suffer from oversupply situation. Many customers are reluctant to suppliers sign long-term contracts, and channel vendors are also eager to cut prices to clean up inventory, causing the price to decrease.