The interest rate of the general lighting market has declined, and the three major international factories are retreating.

Following LEDinside's last article "from the global LED lighting price trend to see the lighting market strategy of manufacturers", this time LEDinside dismantled the three international LED big factory financial reports, to see why the international big factories continue to pull out the LED general lighting market which is still growing.

GE expects to complete the lighting business plan by the end of 2018.

First of all, from the GE's dynamic observation, GE's lighting business includes GE general lighting business, CURRENT system and intelligent lighting. In the annual report of GE 2017, we mentioned the competitive pressure of GE in the global lighting market. Apart from the competition in the lighting industry and energy related fields, the GE products and services sold to the whole world need to meet the specifications and efficiency standards of specific regions, countries and different industrial applications.

In terms of revenue and profit figures in the past few years in the GE annual report, it is more difficult to understand why GE wants to quit the general lighting market. From 2013 to 2017, the interest rates of GE were 4.6%, 5.1%, 7.3%, 4.1% and 4.7% respectively, while the rates of other businesses in the annual reports ranged from 10% to 20%. Lighting is undoubtedly the most unprofitable cause of GE.

For this reason, GE has since ended its lighting business in Europe, the Middle East, Africa and Turkey since 2018, and has ended its global automotive lighting business. In addition, GE also expects to complete the overall lighting business plan by the end of this year.

After selling LEDVANCE, OSRAM announced again that it would sell the lamp business.

In recent years, OSRAM has been reviewing its business model and transforming itself into a technology company. In 2017, after selling OSRAM's bulb business LEDVANCE to Mu Lin Sen group, in 2018, it announced again that it was expected to sell the lamp business. Similarly, we also looked at the reasons for his strategic transformation in recent years from OSRAM's earnings report.

OSRAM wants to sell the lamps and lanterns business under the lighting solution and system of the financial report, and since 2014 to 2017, this business is not profitable. The revenue of lighting solutions and systems in 2017 is 989 million euros, but the profit is deficit of 72 million euro, which shows that the business of lamps and lanterns is dragging down the whole public. The company's profitability. Up to the third quarter of 2018, lighting solutions and systems were still in deficit.

CREE's lighting products remain relatively profitable, but gross margins fall.

In contrast, Cree's lighting products include LED lighting systems and bulbs, and maintain profitability. However, judging from its gross margin performance, the gross margin of Cree lighting products was maintained at 26-28% from 2015 to 2017, and the gross profit margin in 2017 has dropped by 18% compared with 2016.

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