OSRAM split the lighting industry in the LED industry cast a bomb

Following the Holland lighting giant PHILPS from the Royal PHILPS group after the spin off, the German lighting giant OSRAM in April 22nd this year, also announced that it will launch a second wave of spin off plan, in the LED industry to cast another bomb.

The author believes that the SIEMENS group in 2013 to focus on core business, the lighting brand OSRAM spin off 100 years of independent listing; however OSRAM after the listing has been lighting industry intense competition challenges, therefore decided to spin off, only keep the core competitiveness of the business and have. Through the transformation of this time, the future of OSRAM's core business will be in the automotive lighting, smart lighting and solutions, and advanced light sources such as LED and laser, so will focus on high margin, high technology lock-in threshold B2B market.

OSRAM this time several profit poor Department spin out, including traditional light bulb, ballast (Classic Lamps & Ballasts, CLB) and LED (LED Lamps and lighting systems department & Systems, LLS), the OSRAM business accounted for about 40% of revenue. After the spin off OSRAM will retain LED components (Opto Semiconductors, OS), Lighting (Specialty, SP), lighting and solutions business (Luminaires & Solutions, LS).

According to the LEDinside research data show that in 2014 the global LED lighting output value reached 21 billion U.S. dollars, of which the number of LED bulb accounts for all lighting products up to about half, but the price is relatively low, so the LED bulb's output accounted for about 37%.

The author observed, from the beginning of 2010, the annual LED bulb price cuts of up to 30%, although because of the rapid decline in prices and stimulate a lot of demand, but the vicious price competition make lighting manufacturers profits continue to decay in the LED bulb shipments and profits to keep up with the traditional light situation, cause PHILPS and OSRAM are trying to do the original lighting business spin off.

PHILPS and OSRAM announced the spin off action lighting LED lighting industry manufacturers bearish prospects for the future. LEDinside that has the ability to undertake two lighting company candidates for more cost competitive Chinese lighting enterprises to globally market; or non lighting area to have the initiative in the field of intelligent Home Furnishing international companies. Therefore, the future will be able to take over the two lighting brand strategic partner, will determine the future direction of the development of LED lighting industry.

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