At the same time, companies such as Unilumin Technology, BOE Crystal Core, and Hanshi Intelligent Display have also issued price adjustment notices.
When talking about the reasons for price increases, the above-mentioned companies basically mentioned cost increases and previous product price drops.
Dongshan Precision stated that since the beginning of 2022, the price of lamp beads has continued to decline, which has caused huge troubles to the company's operations. In order to ensure high-quality products and better services, in the spirit of sustained and stable operations, and to better cope with current pressures and challenges, it has been decidedIncrease product prices.
Ruisheng Optoelectronics mentioned that in the past year, product prices have continued to fall, while bulk product prices have continued to rise, which has had a considerable impact on the industrial chain, resulting in a serious inversion between costs and product selling prices.
Lead said that in view of the rising supply costs of upstream main raw materials (semiconductor chips, lamp beads, etc.), the production and manufacturing costs of LED display products have continued to rise. The price increase is mainly to cover the cost of rising prices of upstream raw materials.
Unilumin Technology and BOE Crystal Core also attributed the price increase to the recent increase in the prices of upstream raw materials (and some friendly products).
Due to the previous conflict between Russia and Ukraine, consumer market demand has been weak and terminal finished product inventories have increased. Data show that in 2022, the output value of the LED market will decline significantly to US$14.214 billion, a year-on-year decrease of 19%.
But now, TrendForce pointed out that some markets such as LED lighting have entered the stage of recovery. It is expected that by the end of the second quarter, industry terminal inventories are expected to develop towards normal levels and will drive order growth. In the LED display sector, in the medium to long term, the rapid development of emerging application markets has injected new vitality into downstream demand and is expected to drive upstream industry demand. To sum up, the agency expects the LED market output value to show single-digit growth in 2023.
Leyard also said previously that orders began to increase year-on-year after the Spring Festival, and feedback from the front-line team was optimistic; as for recent changes in downstream demand, "I feel that May is a little better than April."
Essence Securities also said that from the demand side, with the rapid recovery of commercial activities such as exhibitions and cultural tourism projects, the LED industry has begun to recover; at the same time, as the costs of new applications such as AI virtual humans, XR virtual photography, Micro LED, and Mini LED continue to decrease, new LED application fieldsThe scene is also expected to gradually open up. From the supply side, many small screen factories were eliminated during the epidemic, and the concentration of industry leaders is expected to further increase.
ANNA