LED lighting chip prices continue to fall

LED prices under major plant overcapacity, prices continue dropping, from July to enter the mainland market seasonal low lighting, plus India LED lighting standard case out of a very low price, but drag this wave of LED lighting prices, packaging factory is expected later this year chip, finished product prices continued loose.

LED industry came out, crystal power and Sanan intensified price war in the mainland, in addition to outside of chip production capacity is a major cause of the huge, packaging plant, he said, dragging down the price of the main culprit is India LED lighting standard case, by the Indian government - led 2 years 2 hundred million LED bulbs lighting standard case, although the price is very low, but the top four vendors are bidding to get orders, including Philips, billion light are on the list, this wave of price tenders LED price shocks is much larger than the three security production carve out.

Because of action sum of government-led, without going through channels, low price to unimaginable, supply chain although orders successfully, but also the impact of the price than the market in India, coupled with the lighting market in China from July into traditional off-season, it is caused mainly due to LED chip prices tumbled, LED product prices had already started from June off-season fatigue.

China LED packaging factory said that the mainland market in previous years, the lighting around July 6 to begin to slow down until 10 to 11 months will restart up the goods tide, this year because of the price, the stock market tumbled, consumer willingness to purchase LED bulbs more weak, so obviously off-season effect than in previous years and, together with the impact of LED prices.

But mainland staff think that, LED bulbs are consumer products, price is an inevitable trend, Philips recently launched a price war in the North American market, Philips proved work quickly, as the price will be of immediate concern when there is no end, only through the supply chain changes in procurement policies, ways to reduce costs in response, "such as socks cheap, but do not pour all the same sock factory"; the manufacturers’ price are face of consumers, not the face of manufacturers, consumers are willing to pay out When buying, the price war came to an intermittent, but consumer products also have easy or hard up characteristics, suggesting that LED lighting take the low road is a long-term trend.