LED lighting is now the price of LED lighting penetration rate rise

Since 2011, affected by the upstream LED chip investment expansion, capacity enlargement; market growth lower than expected, the expected value of the large-size backlight and lighting the top two market did not meet expectations, the various production processes of the products appear substantial price cuts.

Sapphire substrate bear the brunt of the average decline of more than 50%, of which the price of a 2 inch sapphire substrate from the beginning of the maximum $35 / piece, down to $10 / piece. LED chip average price of 25%, the maximum price cut of up to $42%; LED packaging devices average price of 23%, the maximum price cut of up to; LED application product average price of $21%.

According to CSA data center statistics, LED ceiling light from 8 watts in July 2010 sales price of $293, to $143 in December 2011. LED tubular lamp 7 ~ 10W from 180 yuan in 2010 dropped to 84 yuan, down 7 ~ 9W LED decreased from 370 yuan to 211 yuan now, even if many LED product prices fell by nearly half, but with incandescent and energy-saving lamps prices is still poor, for example, now 7W LED bulb low price to 50 yuan, while the energy-saving lamp incandescent lamp as long as 10 yuan, more just 1 yuan (all prices are mid-range price).

The price trend spread across the board, LED chip or package enterprises such as gross profit margins were significantly reduced, in the brutal competition in the market, many local enterprises have also heard the news of the collapse; the price decline is a good thing for consumers, but also in line with the law of Haitz reaction LED industry brightness improvement and cost reduction.

The rapid decline in prices, is conducive to the LED lighting penetration rate rising rapidly, can also be seen as a necessary process to promote industrial development, and a number of core competitiveness such as leading technology or cost leading enterprises will be in this round of price war in talent shows itself.