Prices continued to decline in each LED plant cut into the high margin Market

TrendForce's green energy division LEDinside latest price display, the second quarter LED package price continued to decline. The average price of 2835 lighting package, or fall in the range of 1~9%; and LED 2835 is mainly Chinese, lighting market mainstream products, so the decline reached 10~17%, far beyond other lighting package products. The decline in the price of the backlight LED package fell to 3~6%, this year is still the most competitive price of straight down backlight products.

LEDinside research associate Chu Chao said in the second quarter, compared to previous years, mostly for the LED market demand peak, demand growth momentum this year is slowing down, the main reason is that the global economic situation turbulence, the regional exchange rate shows great fluctuation. For example, Europe, Japan and emerging markets are due to the depreciation of the exchange rate, making the cost of imports of 3C products or LED bulbs increased, thereby affecting the needs of end consumers. A slowdown in the market demand situation, the LED vendor price competition to fill the capacity utilization rate; while facing the LED prices continue to decline, in 2015 the LED strategy to LED niche market, actively into the car, including UV/IR, Flip Chip, CSP LED and other high margin products, to enhance profitability.

The price decline of 2835 LED lighting products in the main specifications of 0.5W reached 17%, the specifications for many LED manufacturers, Chinese main products, the market price is highly competitive; in addition to 1W 3030 and 1-5W ceramic substrate of high power LED product prices fell by 9%, the price is relatively small changes. Stored in Chao said that after the lunar new year, the market picked up slowly, but not as good as last year's demand, forcing LED manufacturers have launched a fierce price competition.

On the other hand, the backlight terminal market demand than in previous years, as well as the adjustment of China's mainland subsidy policy, resulting in slower growth in the intensity of backlight than in previous years, in which direct TV backlight LED larger decline. The size of LED direct type backlight TV mainly in the 3030/2835/3535/3228 package, the price falls in about US$0.25~0.3/pc, the low order TV to bargain to boost sales, the single package price to quarterly decline of nearly 6%. Side light type backlight TV mainstream LED package 7020 single average price fell in US$0.085~0.095/pc, side light type TV requirements including high resolution and high color saturation, thin surface, high order application, because the higher the price that LED terminal decline less pressure.

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