LED hopes this month flat revenue market rebound

By the Spring Festival holiday effect and the first quarter of the off-season effect, after the LED market demand remained flat. In the first quarter profit is not as early as the ideal situation, the industry is currently more than expected in March market sentiment back to the temperature. After the recent stock pressure is expected to digest, to 3 months late in the LED market should gradually improve.

In the first quarter of 2005, when the traditional off-season LED, due to the impact of customer inventory factors, LED manufacturers since December 2004 revenue was generally landslide. Followed by January revenue to benefit the Spring Festival market demand, demand slightly back to warm, but the effect of the lunar new year in February led to a decline in revenue in the month, so the industry had to expect revenue in the year of March can be substantial growth.

The change trend of LED market in the first half of 2005, the industry forecast at the end of last year, in March after entering LED orders will gradually increase, the second quarter of next year when the market is expected to gradually rise. However, due to increased competition, LED market will face downward pressure on competition.

Because of the large-scale use of the 2005 LED on the mobile phone will become the past, dealers said, even if March revenue gradually picked up, but the mobile phone with the LED's price is still difficult to stop the decline this year, mobile phone with LED's profit margins will be less than in previous years. The high brightness LED market, due to the application area will be further expanded, this year's car, traffic lights and future lighting applications LED is particularly optimistic about many dealers.

LED profit levels, Blu ray LED and high brightness blue LED gross margin since the second half of last year, the general decline, due to excessive expansion of the industry also led to oversupply of inventory pressures. But after nearly a quarter of the inventory digestion, is expected to increase 3 months late order is still in favor of shipping and industrial growth driven LED.

Overall, the global LED industry in 2003 and the 2004 calendar year after nearly 30% of the high growth rate, will continue to grow in 2005. Although the main growth points are concentrated in the second half, but dealers are still optimistic that the March revenue levels will be higher than 1, in February. But because the mobile phone application slowdown in demand driven by the growth in LED, this change in demand dealers also pointed out that this year, two years later, replaced by new applications, will be on display, automotive lighting, camera flash, backlight and indoor lighting, mobile phone applications demand growth will be greater than before.