Electronics Production | January 18, 2011
LED-demand recovery not in sight
According to the latest price survey by LEDinside, demand from LED applications still has not recovered.
This includes continued inventory adjustment of large-size panels and lower-than-expected demand from general lighting. As a result, pressure of LED price decline extends from 2010 Q3. Among them, price of LED for large-size panel applications fell by 5% -9%, with most substantial decline in TV backlight applications; high power LED lighting applications declined by more than 12%. Due to relatively stable demand from mobile phone applications, LED prices in this segment are fairly stable with a mere 3% seasonally adjusted decrease. As for prices of LEDs in large-size backlight applications in 2010 Q4, due to slower-than-expected panel shipment recovery, vendors have adjusted shipments, while LED demand recovery is not yet in sight. Hence, in TV backlight applications, LED prices of mainstream specification 5630 decreased by 9%, to US$ 0.11 ~ US$ 0.15, while LED prices of LCD notebook backlight dropped by 5% -6%. LEDinside noted that at this stage, LED prices for mobile backlighting applications, including specifications 0.4t and 0.6, are relatively stable due to stable shipment; price decline for this segment is estimated at 3% in 2010 Q4. In high power LED lighting applications, LED prices declined substantially, affected by weak demand coupled with inventory pressure; prices of mainstream specification 100-120lm plummeted by 12% in 2010 Q4. 2011 Q1 LED market price outlook Due to greater inventory pressure from large-size backlight applications, LEDinside expects demand in this segment to recover gradually at the end of 2011 Q1; therefore, price pressure is expected to ease thereafter. As for the price of LED in LCD TV applications, LEDinside estimates a 9% decline in 2011 Q1. High power LED may face pressure from inventory clearing, therefore, its prices are expected to post a double-digit decline.
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