LED price war push back the energy-saving lamp market Q3 demand higher

In 2015 LED market downturn, corporate said, mainly by China supply chain and brand rise, factory price competition, domestic chip manufacturers EPISTAR also weakened in the second quarter to push back the operation; and the energy-saving lamp industry, the international companies in North America LED bulb price war started; at this stage the short-term price has bottomed out. The original hand LED lighting, shipments in the third quarter is expected to move up sharply. Due to the current LED tube shipments have been reduced to $2, the retail price of about $3, not far away from the traditional lamp, the price is more competitive, will stimulate the market demand continues to grow.

In the third quarter, legal person pointed out that LED lighting demand will improve, penetration on 2 billion 500 million teeth, 1 billion 100 million teeth relative to last year increased exponentially, the decline in chip is OK, because in the process of LED lighting price reduced chip size, Taiwan factory profit limited impact, industry profit will see significant growth. Estimated operating in the past half of the previous 55 crystal electricity ratio of about 45, the situation is still expected to maintain the same pace this year.

In early April China Jinsha River group's acquisition of PHILPS lighting, PHILPS lighting Corporation said that the merger is expected to end in the third quarter consolidated, if the two party merge smoothly will be transformed into a Chinese Jinsha River group, this merger amount at $3 billion 300 million, mainly for the Chinese China government support, the government intends to grasp the LED brand and patent Haikou to improve the competitiveness of LED, Chinese. Since April, PHILPS in the North American market resorted to price war, said in July 1 will return to $3.97, while the GE decided to fight back, in August will launch a 3 price of $10; another 4 brands have resorted to a $11.97 program in WalMart; because the price cut to less than the energy-saving lamps, energy saving lamps sales dropped by 30%.

Chinese Jinsha River group will face two major challenges, the first, Jinsha River group Chinese small group, PHILPS lighting international company, Jinsha River group how to operate this new company, will be an important key; in addition, the Jinsha River group will face to the patent problem, because PHILPS lighting and global LED manufacturers including TOYOTA, Nichia chemical synthesis CREE and cross licensing, PHILPS lighting after the merger will restart patent negotiations, expected to spend a period of time to negotiate the estimated remaining competitors will advantage of this opportunity to occupy the market.

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