The supply of electronic components often moves in a cycle of bust then boom: a period of shortage followed by a period of over-supply. The shortage can occur for many reasons: the manufacturer making a product End of Life because the margins are too small, a disaster hitting the factory, or a major international OEM deciding they need the component in large numbers.
The shortage triggers a reaction from every OEM who needs the component. They buy up as much of the component as they can find. Instead of buying enough for a month ahead, they buy enough for a year. JIT ( Just in time ) supply chain principles are temporarily replaced by the need to ensure supply. It also triggers a response from potential suppliers. Manufacturers, seeing the prices rise, are motivated to increase output. Companies holding a stock they not longer need are motivated to sell excess stock. In time, the supply comes to match or exceed the demand and the OEMs who bought large quantities may discover they have paid far more than necessary.
We can help you smooth out both sides of the cycle. When components are hard to find or have a very long lead time, our component search can help. And when the supply stabilises and you have excess inventory, we can help you sell it.