LED manufacturers are still facing downward pressure on profit margins is a foregone conclusion

Since the first quarter of 2011 LED market demand temperature recovery speed is less robust than expected, including large size panels, LED lighting inventory adjustment effect, makes the LED manufacturers still face pressure drop.

Among them, LED quote large size panel applications to a TV backlight application the most obvious decline, down to 10~15%, but the LED specification of NB/MNT applications, because the product specifications tend to mature, and in recent years the price has dropped to the bottom, so the price fell only 3~5%, fell to a limited extent; mobile phone parts. Because demand is relatively stable, the price of LED is relatively steady, only seasonal downward adjustment of about 3%. As for the high power LED lighting applications, due to the impact of inventory adjustment, the price fell sharply, with an average decline of 15~20%.

TV backlight products into numerous, fierce price competition

1Q11 due to the LCD TV terminal sales data is still sluggish, coupled with the LCD TV related materials and inventory on the high side, making LED pull cargo demand is not as strong as expected. In addition, since 2010 the majority of LED manufacturers in order to attack the TV backlight market, a large number of expansion of production capacity, the 5630 specifications of price competition. Coupled with the customer's LEDTV price strategy, 1Q11's 5630 price drop of about 10-15%.

But as a result of the second quarter to the third quarter of the LED industry is the traditional peak season, and various TV vendors in order to avoid the shortage of LED reconstruction in the first half of 2010, so from the beginning of March LED purchasing power gradually warming, the price decline is expected to slow down the estimated 2Q11.

As for the high-power LED lighting market, the price is still in the short term downward pressure. The current focus is on whether Japan's post disaster reconstruction needs can be fermented in the second half of 2011, and when countries are under pressure to reduce emissions, when another wave of energy subsidies will be introduced. Manufacturers have responded that the Japanese side does have the reconstruction of energy-saving lighting needs.

NB and tablet computer, price is relatively stable

NB, Monitor, Mobile and other applications of LED backlight product specifications tend to mature, while the penetration rate of LED applications still maintain a standard, shipments are relatively stable. Coupled with the 2009~2010 since the price has fallen sharply, so 1Q11 offer is limited, 3020/3014/0.8t and other specifications only slightly decreased by about 3-5%.

As for emerging tablet applications, due to the need to adopt a low voltage LED specification. Currently limited investment, so the price is relatively stable.

Because LED lighting application specification upgrade, inventory adjustment, price decline

Recent LED lighting market demand mostly from commercial space or indoor lighting and other fragmented orders, and did not see a large-scale subsidy policy, making the high power LED offer significantly reduced. In addition, Europe and other LED lighting manufacturers specifications and constantly improve, coupled with huge capacity since last year about the lighting market opened, causing pressure on the stock, the majority of manufacturers are forced to attack the LED lighting market price strategy.

According to the survey by LEDinside, 1Q11 high power LED offer decline of up to 15~20%, LED manufacturers for some large customers is more strategic to give greater price space. The outlook for the second quarter, although the price pressures still exist, but the stock has been adjusted for six months, the estimated price decline is expected to shrink.

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Looking forward to the next 3 quarters of 2011, the size of the LED backlight products to the low price of the low profit stage is a foregone conclusion, but the current price is not the lowest point. After each chip factory production capacity, LED material costs down again, there will be a wave of backlight products more intense low price competition, the time point is estimated to be around 2011 Q3.

As for the high-power LED lighting products, LED manufacturers to improve the specification and vertical integration to improve the LED lighting market penetration. But in the short term, the subsidy policy has not yet significantly appeared, while Japan's post disaster reconstruction needs fastest fermentation be in the second half in 2011, high power LED price decline in the short term is not stable.