Sourcengine’s Feature Focus: September 2024 Update

We’re halfway through the year and at the precipice of the end-of-year holiday shopping season. As we prepare for the debut of new consumer electronics, such as Apple’s AI-integrated iPhone16, the industry is bracing for a possible surge in orders and, more importantly, ongoing excess inventory mitigation.?

Excess inventory continues to be an issue for many electronic components despite high demand and bottlenecks in some areas, such as high-bandwidth memory (HBM), enterprise solid-state drives (SSDs), graphics processing units (GPUs), and advanced packaging. In DRAM specifically, Samsung’s release of reball DDR5 chips and Chinese memory manufacturers aggressively increasing production has contributed to poor spot prices.??

Analysts believe that the current market enervation will persist until 1H25, proving that the industry still has a lot of healing to do before it can reach stabilization. It will be critical for organizations to keep up with mitigation efforts during this time while keenly watching the market for any indications of upcoming shifts. As we finish 2024’s third quarter, Sourcengine’s experts are ready to help at any step.??

You can contact us on Sourcengine’s contact us page or, even better, meet with our team in person at Electronica 2024.?

We’re Going to Electronica 2024??

Yes, you heard it right! Sourceability will attend Electronica 2024 in Munich, Germany, for the world’s leading fair for electronic components. This will mark Electronica’s 60th year since it first began in 1964. Since this is a special occasion in the trade fair’s history, all 18 exhibit halls are expected to be occupied for the first time! This will be a huge show where visitors and exhibitors alike can share their thoughts on the future of the electronic components industry.??

The electronic components industry has been under strain for the last few years. Excess inventory continues to impact original equipment manufacturers (OEMs), contract manufacturers (CMs), and electronic manufacturing service (EMS) providers of all sizes, while others are navigating bottlenecks as artificial intelligence (AI) demand puts a chokehold on production capacity.??

Sourceability’s global team of sourcing experts and its global e-commerce platform, Sourcengine, can help OEMs, CMs, and EMS providers quickly source the products they need or sell the ones they don’t. Our knowledgeable team will be available all days of the exhibition, from November 12th –15th, ready to help tailor our solutions to your needs.??

The electronic components industry has been rife with challenges over the last several years, from shortage to glut and everything in between. There will be lasting effects on the industry after the global shortage, with a rise in instant obsolescence after many original component manufacturers (OCMs) prioritized their more lucrative lines, letting their legacy production lines fall silent.??

No matter the challenge, our team will get you through it, and we can’t wait to show you our solutions at Electronica.?

Sell Your Excess Inventory Today??

Most electronic component market sectors have faced an uphill battle since demand dropped in late 2022. While AI and automotive demand have kept some sectors afloat, the industry is still fighting its way toward recovery. Excess inventory has been an industry challenge for nearly two years, with organizations doing what they can to prevent additional costs from piling up.?

Holding onto excess inventory can impact an organization beyond capital loss, with price erosion, increased obsolescence, and operational inefficiency being just a few of the many issues that can arise. Should an organization wind up with excess inventory, selling it is the best solution to digest the surplus while keeping additional costs low quickly.?

However, many organizations might not be prepared to sell their inventory immediately, lacking the platform, resources, and market presence to do so successfully. Partnering with an electronic component distributor takes care of these issues, as a distributor has the resources, time, and existing audience to sell excess quickly.?

Sourcengine is a global platform that over 100,000 interested buyers use. Electronic components sold on-site will be given search engine-indexed pages, meaning buyers can quickly find an organization’s excess for sale with a quick search on their preferred browser. With its different selling models, organizations can decide which works best for their needs, partnering with Sourcengine’s team to list their stock as soon as possible.?

Experts believe that slow demand and downward pressure for some sectors, like DRAM, will linger into 1H25. To keep costs low and prepare for stabilization in 2025, companies should sell their excess now as other businesses begin to replace stock supplies in preparation for the peak holiday shopping season.??

Be sure to join us next month for more updates!?