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Business | July 18, 2012

Competition intensifies as U.S LED bulb price hits new low

According to LEDinside’s latest price survey, the global ASP of LED light bulb dropped slightly in June.
Global ASP of 40W equivalent LED light bulb dipped 4.5% to US$19.9 with prices in the United States and Germany undergoing more prominent decrease. As for 60W equivalent LED light bulb, global ASP in June dipped 2.3% with prices in most countries on a downtrend.

LEDinside notes that prices in the United States experienced more drastic downturn in June. The lowest prices of 40W equivalent LED light bulbs in United States and Korea plunged below US$10. As for 60W equivalent LED light bulb, the lowest price in the United States slid below US$20 for the first time, making it the most cost-competitive area besides Korea. It also indicated how fierce the competition in the United States really was – all companies, including first-tier lighting firms, are proactive about making inroads into the LED lighting market.

40W Equivalent LED Light Bulb Price Dropped below US$10

According to LEDinside, the global ASP of 40W equivalent LED light bulb slid to $19.9 in June; most products’ prices either remained flat or decreased slightly. June did not see a lot of new products hit the market. 40W equivalent LED light bulb ASP dropped by 10.7% and 9.6% in the United States and Germany, respectively.

The price downtrend persisted and in turn further intensified the competition. In particular, the lowest price in the United States went down to US$9.9, making it the second country where the LED bulb price dropped below US$10. In addition, the first-tier companies’ LED light bulbs, which were certified by Energy Star certificate, saw the lowest price dip to US$10.97.

40W equivalent LED light bulb ASP in Japan dropped by 1.9% to US$20.6, while it dipped 0.3% in the United Kingdom due to appreciation of exchange rate and new products releases. Moreover, ASP in Korea plunged by 0.5% in June to US$15.8 also due to appreciation of exchange rate. No new products were released in Korea in June.

60W Equivalent LED Light Bulb ASP on the Downtrend, Less New Products Hit Market in June

Global ASP of 60W equivalent LED light bulbs dropped by 2.3% in June to US$32.7; the prices in most countries stayed more or less flat. ASP in the United States and Germany dropped by 5.6% and 4.2%, respectively. ASP in United States dipped to US$27, the lowest among all countries.

ASP in the United States dipped 0.4% in June to US$39.9. As for Korea, its 60W equivalent products’ prices stayed the same, but the Korean won appreciation caused the ASP to decrease. In addition, the ASP in Japan went up 0.5% in June due to the Japanese yen depreciation, even thought the product prices continued to drop.

According to LEDinside research, a gradual increase of products that met the standards and specifications started to hit the market since February 2012; companies began to put more emphasis on improving product performance or adding new features and release new high-efficiency light bulbs.

These pricier, high-efficiency products caused LED light bulb ASP to go up or stay flat. However, starting from June, companies around the world not only started to slow down their pace of releasing new products, but also began to cut their current products’ prices, which in turn resulted in the mild downtrend in the global ASP.

LEDinside states that the global LED light bulb market is back on the right track: the focus shifts from the price competition to the pursuit of better price/performance ratio. It is estimated that after the transition period, LED light bulb market may enter the mature stage as products of high price/performance ratio become more popular and the prices become more consumer friendly.

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