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Optoelectronics/Displays??

Drop in LED bulb price aggravates competition

Posted: 18 Jul 2012 ?? ?Print Version ?Bookmark and Share

Keywords:LEDinside? TrendForce? LED light bulb price?

The global ASP of LED light bulb dropped slightly in June. This is according to LEDinside's most recent price survey. The LED research arm of TrendForce added that the global ASP of 40W equivalent LED light bulb dipped 4.5 percent to $19.9 with prices in the U.S. and Germany falling steeper. As for 60W equivalent LED light bulb, global ASP in June dipped 2.3 percent with prices in most countries on a downtrend, added LEDinside.

LEDinside said the lowest prices of 40W equivalent LED light bulbs in U.S. and Korea plunged below $10. As for 60W equivalent LED light bulb, the lowest price in the U.S. slid below $20 for the first time, making it the most cost-competitive area besides Korea. It also indicated how fierce the competition in the U.S. really wasall companies, including first-tier lighting firms, are proactive about making inroads into the LED lighting market.

According to LEDinside, the global ASP of 40W equivalent LED light bulb slid to $19.9 in June. Most products' prices either remained flat or decreased slightly. June did not see a lot of new products hit the market. 40W equivalent LED light bulb ASP dropped by 10.7 percent and 9.6 percent in the U.S. and Germany, respectively. The price downtrend persisted and in turn further intensified the competition. In particular, the lowest price in the U.S. went down to $9.9, making it the second country where the LED bulb price dropped below $10. In addition, the first-tier companies' LED light bulbs, which were certified by Energy Star certificate, saw the lowest price dip to $10.97.

40W equivalent LED light bulb ASP in Japan dropped by 1.9 percent to $20.6, while it dipped 0.3 percent in the U.K. due to appreciation of exchange rate and new products releases. Moreover, ASP in Korea plunged by 0.5 percent in June to $15.8 also due to appreciation of exchange rate. No new products were released in Korea in June.

Global ASP of 60W equivalent LED light bulbs dropped by 2.3 percent in June to $32.7. The prices in most countries stayed more or less flat. ASP in the U.S. and Germany dropped by 5.6 percent and 4.2 percent, respectively. ASP in U.S. dipped to $27, the lowest among all countries. ASP in the U.S. dipped 0.4 percent in June to $39.9. As for Korea, its 60W equivalent products' prices stayed the same, but the Korean won appreciation caused the ASP to decrease. In addition, the ASP in Japan went up 0.5 percent in June due to the Japanese yen depreciation, even though the product prices continued to drop.

According to LEDinside research, a gradual increase of products that met the standards and specifications started to hit the market since February. Companies began to put more emphasis on improving product performance or adding new features and release new high-efficiency light bulbs. These pricier, high-efficiency products caused LED light bulb ASP to go up or stay flat. However, starting from June, companies around the world not only started to slow down their pace of releasing new products, but also began to cut their current products' prices, which in turn resulted in the mild downtrend in the global ASP.

LEDinside stated that the global LED light bulb market is back on the right track: the focus shifts from the price competition to the pursuit of better price/performance ratio. It is estimated that after the transition period, LED light bulb market may enter the mature stage as products of high price/performance ratio become more popular and the prices become more consumer-friendly.





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