Although the LED application continues to expand, but the industry expanding output triggered doubts LED industry makes the past pile up in excess of requirement, the average annual price decline of about 20%~30% in 2008, by the weak demand, consumer market, factory price competition caused by the lead, surface mount type LED light products in the first half of the 2008 price decline has exceeded 3. LED industry said, even in the third quarter of traditional popular quarter, still does not rule out will continue to fall.
LED industry pointed out that since 2008 the Japanese manufacturers Nichia took the lead price, resulting in high order photometry (sideview) downward price pressure, average price (ASP) by 20%~30%, resulting in LED industry in Taiwan (crystal electric etc.) was forced to cut prices, product gross margin squeeze pressure. In addition, white card and mobile phone manufacturers international demand slowed down, the second quarter of the market rebound speed slower than expected, resulting in price pressure is still in decline, but slightly more stable, consumer confidence will affect the market performance in the third quarter key.
Taiwan LED industry said that the metering product price is due to market demand and industry chain effect leads to poor price, but the direct type (Topview) product prices fall, is Taiwan manufacturers price competition, because the 2007 outbreak of 7~10 inch LED panel product demand, the industry also have to expand production capacity, the technical threshold the increase is not high, the supplier, direct type products are difficult to avoid price pressure, some products decline even as high as 5.
Not only Taiwan factory ASP price slipped by the Taiwan LED industry to actively markdowns, notebook computer (NB) LED backlight customers gradually lost influence, the United States LED chip maker CREE is also facing the product price decline, the market oversupply problems, will affect the short-term profit performance.
With the traditional third quarter quarter Wang is coming, the upstream chip factory that product price continued to fall, depending on the market demand, high order metering products have been gradually warmed, not the brightness of 1800~2000mcd new product output plus the price is unlikely, is expected to increase gross profit of products. But the downstream packaging factory is that, although the rise in the third quarter of the market demand, but the industry capacity gradually open more pressure, if the manufacturers continued to play the price strategy of rush orders, the market price is difficult to stabilize, even Wang quarter increased demand, prices warning still exist, prediction for single quarter decline may reach 5%~10%.
Source: LEDinside
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