Components | February 21, 2012

LED bulb price dipped sharply in 12’Jan

LED bulb price dipped sharply in 12’Jan, 40W equivalent LED bulb price dropped below USD 10.
According to the latest price survey conducted by LEDinside, LED bulb ASP continued to fall in 12’Jan following the steep price drop in 11’Dec., with the ASP of 40W equivalent LED light bulb sliding to USD 19.6. The price competition in South Korea was the fiercest – the light bulb prices of the first tier brands have plunged below USD 10. As for the 60W equivalent LED light bulb, the world-wide ASP fell to USD 35.4, while the ASP in South Korea plummeted below USD 20.

40W Equivalent LED Lamp Underwent Sharp Drop in Prices

LEDinside states that the ASP of 40W replacement products fell nearly 7% in January; South Korea still held the most competitive ASP at US$10.4, dipping 13% with the lowest price at US$8.2. On the other hand, the ASP in Japan merely fell by 1%, unable to maintain a sharp downtrend in 4Q11.

Due to the Japanese Yen appreciation, the price fall appears modest after conversion to US dollar. Moreover, LED bulb prices in Japan has undergone a sharp drop before, so there is little room for the prices to fall. The price in the United Kingdom fell by approximately 9%; with more new products entering the market, while 40W replacement products’ prices have dropped below US$30. The price in the United States dropped by 6% in 12’Jan.

60W Equivalent LED Lamp Prices Remained High

As for the 60W equivalent LED light bulb, the ASP in 12’Jan fell by about 4%; the prices in most areas remained above US$30, with the only exception in South Korea at US$17.3. According to LEDinside’s research, on account of the high technology barriers of thermal dissipation, 60W replacement products are relatively few in the market, but recently there is a trend of more new products being released in Japan and the United States.

Perspectives from LEDinside

LEDinside indicates that as opposed to 4Q11, it was the price of 40W equivalent LED bulb that experienced more drastic price drop in 1Q12. Aside from South Korea, the 40W equivalent LED bulb’s prices in North America and the United Kingdom have been sliding toward US$10. The lowest prices in most areas are expected to fall below US$10 in 2H12.

At present, the major brand vendors, in particular, South Korean vendors, are actively participating in the price war and lowering prices for their products, launching 40W and 60W replacement products with significantly lower prices. The world-wide ASP of LED light bulbs has been in a strong downtrend; it is only a matter of time that the LED light bulbs become affordable to most consumers.

South Korean makers’ LED chip prices are lower than those of other manufacturers, and the same goes for their LED light bulb prices, which suggests that the South Korean government and the makers are taking a highly aggressive strategy to secure their leading position in the LED industry.

Prices aside, technologies and specifications such as brightness and color temperature are equally crucial. It is expected that the manufacturers will focus more on improving their products’ quality and specifications, and not just on releasing new products with lower prices.
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