Electronic component suppliers were glad to ring out 2001. After all, high inventory levels of components and weak demand from electronics systems manufacturers resulted in low prices and plunging revenues for most component companies.

Prices were down virtually across the board in 2001 with a few exceptions. Memory IC tags were hit especially hard, according to the Semiconductor Industry Association (SIA). Average prices for DRAM fell from $4.70 in January to just $1.68 at the end of the year. The average price for an SRAM dropped from $5.90 in January to $2.70 in the fourth quarter. Flash prices fell from an average of $6.45 in January to $4.46 in the fourth quarter.

However not all prices fell. For instance the average price of a sensor increased from $0.525 in January to $0.821 in Q4. Microprocessor (MPUs) also increased from an average of $61.75 in January to $76.40 as more higher-cost Pentium 4 MPUs shipped.

First quarter is usually the slowest time of the year for the electronics industry segment, so buyers can expect parts availability to run high and prices to remain soft for most components. Based on current demand forecasts for components, buyers can expect most prices to remain soft until fourth quarter.