India's bid drags LED chip prices to continue to loosen

LED prices in the major manufacturers overcapacity, prices continue to fall, the mainland lighting market into a seasonal off-season in July, coupled with India's LED lighting standards to open a very low price, but also dragged this wave of LED price trends, The packaging factory expects that the price of chips and finished products will continue to loosen in the second half of this year.

LED industry has spread, the price war between Jingdian and Sanan in the mainland has intensified, in addition to the large capacity of the wafer is a big reason, the packaging factory said that the main cause of dragging prices is the Indian LED lighting standard, led by the Indian government for 2 years 2 The lighting standard of 100 million LED bulbs, although the price is extremely low, but the top four bidders have received orders, including Philips, Yiguang are on the list, the price of the bidding on this wave of LED prices is much greater than Sanan Capacity is available.

Because the bid is dominated by the government, it does not need to pass through the channel, the price is so low that it is hard to imagine. Although the supply chain succeeds, it also hits the price of the market outside India, and the lighting market in mainland China starts from July. Into the traditional off-season, is the main cause of the LED chip price setback, LED products prices have started to show off-season fatigue from June.

The mainland LED packaging factory said that the mainland lighting market will start to slow down around June to July, until October-November will restart the pulling tide. This year, because of the housing prices and the stock market tumble, the willingness of consumers to purchase LED bulbs is weak. Therefore, the off-season effect is more obvious than in previous years, with the impact of LED prices.

However, mainland manufacturers believe that LED bulbs are consumer products, and price cuts are an inevitable trend. Recently, Philips launched a price war in the North American market, which proves that Philips has changed very quickly. As for when prices will kill, there is no end. The supply chain can only pass through. The way to change the procurement strategy and reduce costs is to respond, “just like socks are cheap, but not all the factories that make socks are dumped.” The price of the manufacturer is facing the consumers, not facing the manufacturers, and the consumers are willing to pay for them. When buying, the price war will stop, but consumer products also have the characteristics of easy to fall and rise, suggesting that LED lighting is a long-term trend.

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