LED price war throes only to fight for market share

Business times European brands PHILPS in the North American market to start the LED bulb price war, the market is to be interpreted as clearing inventory, but LED factory analysis, what's more important is that the first-line brand factory cheap grab has been imperative, not to follow the brand factory will face market share loss dilemma.

The North American market with the mainland, Japan and Europe tied for the world's top four lighting market, international companies in any market price strategy has index, while in the North American market, PHILPS, CREE, GE for the three major lighting brand, from the historical point of view, these international big plant is profit oriented, pay attention to profit more than the extent of sprint revenue, PHILPS is willing to sacrifice profits, absolutely have the strategic objective.

Taiwan LED factory, PHILPS's goal is clear, is to guide the price down, for market share, the domestic LED lighting is consumer products, price competition is an inevitable trend, the gross margin is not high, the brand factory to the "quantity", set the way operation especially PHILPS this wave of killing, if successful take the market share, LED lighting off will be the biggest beneficiaries, the rest of the brand if it does not follow, not only give up market share, the market comes, the profit level is inferior to other brands, several waves of shock after the gap will become increasingly large.

Regardless of whether the North American Lighting brand market share Taiwan how the transfer of the supply chain is the main beneficiaries, such as the three North American lighting brands are lextar customers, EPISTAR is independent of chip's largest suppliers, once the products are standardized, have huge demand, the supply chain can play in Taiwan good at manufacturing advantages, the production line utilization rate is high, with pull capacity, which is profit.

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