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RS Components press release mentions RPi

Former Member
Former Member over 13 years ago

RS Components issued a press release today:

 

http://www.electrocomponents.com/media/press-releases/2012/07/13th/

 

saying

"In the first quarter Group sales were at a similar level to last year.

The International business declined by 2% and the UK grew by 5%;

2% of which was accounted for by Raspberry Pi (1)."

 

Their first quarter ended 30 June 2012.  It isn't clear to me when

they say "2% of which" whether they are referring to 2% of UK sales

or 2% of worldwide sales.  If we assume it means worldwide sales,

then we can do some sanity checks.

 

They don't say what quarterly worldwide sales were,

other than similar to last year, and I don't see last year's

quarterly sales either.   Annual sales for 2012 were reportedly

£m  1,267.4, so dividing by 4 gives an estimated quarterly

sales of £m 317, and 2% of that is  £m 6.3 in RPi sales.

Dividing by an estimated £22.5 per unit gives an estimated

282000 units, which seems a little high to me.  So maybe the

2% means 2% of UK sales, since RPi sales seem to be more

concentrated in the UK.

 

They don't say what their RPi profit is, unfortunately, but their

annual report says their gross margin was 46.8% in 2012.   I think

RPi gross margin is much lower than that, so RPi probably accounts

for much less than 2% of worldwide profits.

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  • morgaine
    morgaine over 13 years ago

    Both Farnell and RS are (ballpark) billion-dollar companies, Premier Farnell quoted at just under a billion revenue and RS's parent Electrocomponents at just over a billion.

     

    In the context of a ballpark $1bn pa., Raspberry Pi is just petty cash, totally hidden in the noise.  Even if they each manufactured 1 million Pi boards and each one cost a full $35 to make, that would still constitute only $35m and the expenditure wouldn't even make a noticeable blip on their revenue charts.

     

    These are huge companies each dealing with an immense product range, and we're in danger of overblowing the direct dollar significance of Pi to either of them.  Until Pi gets into education and many millions of Pi get shipped, it's all just petty cash.

     

    Morgaine.

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  • morgaine
    morgaine over 13 years ago in reply to morgaine

    It's worth noting that for Chinese manufacturing industry, a million Pi boards would be totally imperceptible.

     

    RS and Farnell are having their reputations badly tarnished by the slow rate of production and hence huge customer dissatisfaction, so it's to be expected that they would want to massively ramp up production and terminate the problem as fast as possible.

     

    The fact that Pi boards are being built so slowly must be caused by something outside of their control.  It's neither capacity in China nor investment money, which is just petty cash at these production levels as I mentioned above.

     

    Morgaine.

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  • Former Member
    Former Member over 13 years ago in reply to morgaine

    It's worth noting that for Chinese manufacturing industry, a million Pi boards would be totally imperceptible.

    Totally agree.  I used to work in one of the large assembly houses when they still had plants in the UK, experience of that suggests that even 10 years ago a single smt line should have produced a good 2+ million in the last four months.

    It's neither capacity in China nor investment money

    Parts shortage or capacity is being allocated to more profitable things ?

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  • Former Member
    Former Member over 13 years ago in reply to morgaine

    It's worth noting that for Chinese manufacturing industry, a million Pi boards would be totally imperceptible.

    Totally agree.  I used to work in one of the large assembly houses when they still had plants in the UK, experience of that suggests that even 10 years ago a single smt line should have produced a good 2+ million in the last four months.

    It's neither capacity in China nor investment money

    Parts shortage or capacity is being allocated to more profitable things ?

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