GE maybe fought to high-end smart lighting

Recently, GE announced the fourth quarter of 2017 earnings. From the report point of view, GE's fourth quarter overall revenue fell 5%. Among them, the lighting business revenue fell 7% from 584 million US dollars in the fourth quarter of 2016 fell to 546 million US dollars.

In addition, GE released a footnote in its Q4 financial report, stating that the company is now taking revenue from Current and other lighting businesses as a unit, the lighting business, and is also looking for buyers for both businesses. In fact, GE's move is not surprising. With GE's decline in lighting business, lighting business in its revenue system has been minimal.

Lighting business is not included in the future layout

Previously, GE's lighting business belonged to the Energy Interconnection and Lighting business unit, and GE planned to sell the lighting business in the third quarter of 2017 after GE isolated its energy interconnection business and began incorporating the energy interconnection business into GE's power generation business GE Power).

At present, GE mainly concentrates its business in the three major fields of aviation, energy, electricity and healthcare, while the lighting business has not been incorporated into the future. Lighting business will be led by GE's current company, meaning, the future of GE lighting business is only part of the current subsidiary.

In fact, the lighting business is now GE's smallest business, accounting for only 2% of the company's revenue, and sales of bulb in 2017 have dropped 66%. But many people think that without the general lighting business, always feel something missing.

In 1879, Edison invented the first incandescent light bulb in human history. A year later he founded Edison Lighting Company, and after a decade the company continued to expand and develop. In 1889, Edison's company merged with another company and was named General Electric. Since then, GE rapid development of light bulbs, a household name.

So, why GE now abandon the lighting business? The emergence of energy efficient LED lamps, so that consumers no longer need the bulb. Although LED lamps are more expensive than regular bulbs, consumers often have to use them for several years before they need to replace the LED lamp, which in turn causes LED lamp manufacturers to fall to the bottom of the market. It is understood, GE plans to sell the lighting business, still retain current company.

In June 2017, GE Lighting CEO pointed out in an internal e-mail that GE officially began discussing with potential buyers about the sale of GE lighting business, which GE is considering to sell including North American residential LED lighting and residential networking technology but will also retain A commercial LED lighting business called Current. The news officially implemented the rumors that the outside world rumors GE will sell the lighting business.

On November 13, 2017, when GE's new CEO, Flannery, presented the blueprint for GE's future, he said that GE would focus on the three major areas of aviation, energy, power and healthcare without mentioning the lighting business.

February 6, 2018, GE in the fourth quarter of 2017 earnings disclosed that it intends to sell the lighting business. Foreign media said potential buyers may include several lighting manufacturers from China and Europe and the United States.