GE why split LED lighting into new energy?

Lead: 2014-2015 years of LED industry development, Europe and the United States, the traditional LED lighting manufacturers have to move towards high profit technology development. The rise of China's LED industry chain will enable the industry to enter a new period of maturity. Asian manufacturers to reduce production costs, forcing companies like GE, OSRAM, PHILPS and CREE and other European and American manufacturers to focus on high profit groups. The GE strategy also shows that enterprises want to in the IOT and smart lighting industry to seize the initiative.

Ge split LED lighting business, solar energy and energy storage technology to a newly formed company Current. (source: General Electric)

Industry giants adjust the pace to keep up with the times

In 2014, General Electric (hereinafter referred to as GE) to $3 billion 300 million ($100 billion 700 million dollars) to sell its appliance business to the Swedish company elekes (Electrolux), was widely rumored Ge also will sell the lighting business. But GE denied that it would sell its 100 year history of lighting. However, GE announced in October 7, 2015 that it would spin off LED lighting, solar and energy storage technologies to a newly formed company Current.

According to a Bloomberg report, the new company will be able to significantly enhance revenue, from $1 billion in annual revenue, increased to $5 billion a year revenue.

GE has a history of 125 years, and since 1890 Thomas (Thomas Edison) to set up this company, the traditional lighting has always been an important cause of the group. In 1963, Nick, the inventor of the LED red Ho (Nick Halonyak Jr.) Yake Lun g in GE laboratories successfully invented red LED, make GE become a pioneer in the LED industry. Red LED on the blue and white Aaron Yake LED foundation foundation in the future.

In recent years, the global incandescent bulbs from the beginning of 2005 by Brazil and Argentina, phasing out and slowly spread globally, Edison invented the light bulb era end. Governments around the world have been pushing for energy-saving LED lights in recent years, including OSRAM and GE, which are also phasing out the production of traditional incandescent bulbs, halogen lamps and ballasts (ballast). At the end of August 2015, GE issued a memo, inform the employees will terminate part of traditional lighting products, will focus on the LED and smart lighting products. According to Bloomberg data, the company's LED revenue surged 77% in the second quarter, while other lighting products have declined by 7%.

However, LED lighting products revenue surge may also mislead the outside world. LED industry fierce price war for many companies under pressure, and adjust the company strategy. , a senior analyst at LEDinside, said: "there is a keen competition in the LED lighting and light bulb market, and the company is trying to find a way to keep pace with competitors such as. "Chinese LED lighting manufacturers in recent years to rise LED bulb prices dropped significantly, without exception, LED lamp prices also fell sharply with last month, Chinese domestic price has come to $1.56 ($50.72 dollars). In the United States market, GE also hit the price war in August 2015, launched a pack of three GE Bright Stik LED, the price is only $10 ($325 dollars) products.

LEDinside: spin off the LED lighting industry bullish Europe and the United States to shift the focus of the highest profit technology

Emerging Chinese companies entering the LED industry are also influencing the activities of existing vendors. Lv Lishun, LEDinisde Research Manager, said: GE is gradually losing control of the LED market, the company will be split into a separate business lighting business will bring greater flexibility in government GE. Want to participate in the bidding of the local OEM manufacturers or local companies, factories joint venture production. "

Comparison of GE and PHILPS's current policy, will find both towards the development of intelligent lighting. GE released 3 new LED light bulbs in 2015, and in the past 10 months in the past months to launch a key smart lighting products. In the part of home lighting applications, in May 4, 2015 GE also introduced a color change, can be compatible with the Apple HomeKit lighting products. On the same day, GE also issued a statement, announced cooperation with Qualcomm, the development of indoor positioning system, targeting the retail industry. Even the GE LED street lamps are moving towards the development of smart street. This month, GE announced the signing of a memorandum of cooperation with the shot detection system ShotsSpotter, the development of the shooting can be detected, gunfire street lights.

Yu Chao said, GE recently announced that it will develop a higher profit, less competition in the technology of Chinese manufacturers. China's energy and environmental policies, as well as government subsidies, make solar and commercial LED lighting industry competitive. By splitting solar and commercial LED lighting, GE will be able to focus more on aviation, health, and oil and gas.

This decision is also reflected in the real estate industry in the development of 2014-2015 LED, Europe and the United States, the traditional LED lighting manufacturers have to move towards high profit technology development. In PHILPS, for example, the LED components business group bright sharp (Lumileds) and automatic lighting business group of independent spin off, and then focus on the high profit health applications. The German giant OSRAM is also ready to split the traditional ballast, lamps and LED lighting and lighting business solutions, in order to focus on the development of special lighting applications, such as automatic lighting, LED chip, LED components and industrial lighting. Even the United States, CREE (CREE) will be a high profit power (Power) and radio frequency (RF) business group changed its name to Wolfspeed, and ready for IPO public offering.

GE consolidation in the lighting industry assets left by Edison at the same time, but also continued to adjust. The rise of China's LED industry chain will enable the industry to enter a new period of maturity.