Distribution Insights – October 2023 

Key Takeaways: 

1. 3Q POS seen in-line, down low to mid-single digits Q/Q, with seasonal EMEA, downside in Americas, and slight upside in APAC.

2. 3Q booking seen missing expectations globally; recovery in orders not projected until 2Q24. 

3. 4Q outlook weaker M/M on soft bookings, backlog flush, continued inventory headwinds and increased cancellations in China.

4. Avnet seen outperforming Arrow in 3Q in Americas and APAC on strong execution and Arrow headwinds from TI moving direct.

5. Arrow/Avnet/others courting Future customers/suppliers with Arrow offering aggressive pricing. Asian/Private distis seen turning more competitive buying market share via terms/prices. Arrow seen trimming costs more aggressively than Avnet. 

6. Infineon considering consolidating large (>$50M) programs to Avnet from Future; timing noted as potentially 6-12 months away.

7. Avnet seen consolidating Apple programs from Asian distis. 

8. Feedback points to more customers aggravated by Arrow’s aggressive tactics; Avnet/others’ aggression noted as more modest.

9. Arrow seen making additional changes to GC mgmt., dividing APAC to two divisions. Supply chain sees changes as positive, potentially stabilizing Arrow’s execution in ST/MT, but unlikely to affect TI/Analog Devices trend of going direct.