Overcapacity, high inventory, price war: LED industry keywords

National LED product quality inspection center technical alliance was established in Xiamen last weekend. Reporters learned from the meeting, at present, LED production enterprises, has entered the consolidation period". In order to return the funds at the end of the year, many companies once again played a crazy price war".

[status]

This year into the depth of consolidation period"

A Xiamen LED production company official care-laden told reporters, because of the economic downturn, the inventory pressure, they recently enterprises operating rate has been significantly affected, "always open the stop, but cannot turn off".

Yesterday, the company is located in Tongan production workshop, the reporter saw dozens of machines, less than 70% is still running. In the workshop, 23 workers have told reporters that since last year, the factory is not good business, many goods have not sold, "and other related enterprises in the park, but also the same dismal business".

Reporters learned from the Xiamen Optoelectronics Industry Association, at present, a total of more than and 200 LED manufacturing enterprises in Xiamen. After a period of rapid development of the previous two years, from last year, the industry began to enter the 'consolidation period'. "

It is reported that the affected companies are mostly engaged in simple product assembly, there is no patent and technology, mostly in the following two years to do the same.

[response]

For the withdrawal of funds, sale inventory

To cope with the high inventory caused by excess capacity, price war has become one of the most direct means of promotion. According to the statistics of the Institute of Engineering LED industry, LED upstream substrate and chip prices fell by more than 1/3 compared to the beginning of the year, resulting in the profit margins are severely compressed.

"Sales do not go out of the product, the general will be dumped at the end of the goods. Xiamen Topstar market department told a reporter, from the upstream industry, since the first half of this year, the upper reaches of the display chip LED, the highest rate of decline has reached more than 50%. Xiamen Optoelectronics Industry Association, told reporters that the average annual decline of such chips reached 10% to 20%.

According to industry sources, Sanan optoelectronics each quarter will clean up an inventory, sales price is much lower than the normal price, the market price is usually seventy percent off.

Xiamen topunive Technology Co., stakeholders told reporters, many domestic downstream enterprises to buy chips, we often ask the product performance, but to focus on price. When the price is getting lower and lower, more and more LED chip manufacturers, will also fall into the business of losing money. "

[market]

LED retail product prices significantly

With the rapid decline in upstream chip prices, the price of downstream products have also been down. Topstar a market department official told reporters, now, many civil LED lamp manufacturers sales, is usually a quarter of a price cut, each price in the range of 3%--5%.

Xiamen, a well-known LED producer Liu told reporters that a 7W bulbs, last year can sell 40--50 yuan, and this year can only sell twenty yuan, some small factory products can be traded for $12 --13 yuan.

It is reported that a number of small and medium enterprises in order to return the funds, will be lower than the market price of the sale of finished products. For example, a 3 Watt LED ceiling lamp, the normal price is $13, the ex factory price is more than $16, but some dealers will sell 10 yuan or even lower. Mr. Liu said. In addition, the reporter also found that some LED TV prices, but also began to decline. For example, a 32 LED TV, the price fell from the previous $2000 to $1500.

"LED product prices, for consumers is indeed a good thing, because you can buy cheaper products. "Xiamen Electronic Association official told reporters, however, it is important to note that the LED market is chaotic, some rely on the" price war "to acquire the market, the product is not necessarily a guarantee of quality, and the brand is relatively messy.

People in the purchase, not to covet cheap and buy three noes inferior products.