In the first half of the year, the price of white light beads decreased by less than 8%. The decline in the second half of the year narrowed.

[Source: "High-tech LED Research Review" August issue GLII]

The latest research data of the High-tech LED Industry Research Institute (GLII) shows that the price of white LEDs in the mainstream market in China in the first half of 2012 has slowed down slightly, with a single quarterly decline of less than 8%. GLII believes that although the price of LED packaged devices has continued to decline in the first half of this year, it has entered a period of rational adjustment, indicating that the LED packaging market is entering a mature stage.

The main white LED price data description:

Data range: Select only the price of white LEDs produced by Chinese and Taiwanese companies. Model: Select the main models 3528, 3014, 3020, 5050, 3030, 2835, 5630, 5730, 3535, 1W, 10W (price is calculated by 1W)
Power definition: low power refers to 0.06~0.1W lamp bead, medium power refers to 0.2~0.5W lamp bead, high power refers to lamp bead above 1W time: January-June 2012 price: the price data involved is Average price of market sales
In the first half of the year, the price decline of white light beads narrowed.
Affected by the sharp increase in demand in the lighting market and the rapid decline in the price of LED white light bulbs in 2011, the decline in the price of LED white light bulbs in the Chinese market in the first half of this year began to shrink. Compared with the same period last year, the decline slowed down, showing market prices. Change has entered the rational stage.

Figure 1 The average price decline of China's LED white light bead in the first half of 2011-2012



Source: Gaogong LED Industry Research Institute (GLII)

As can be seen from Figure 1, from Q1 2011 to Q3 2011, the overall price of LED white light beads continued to decline, starting from Q3 2011, the price decline slowed down significantly. Among them, the average price drop of Q3 LED white light bead in 2011 reached a peak of 13%, and by 2012 Q2 this data has narrowed to 8.2%, a decrease of 36.9%. GLII believes that the overall price decline of China's LED white light bead will show a gradual narrowing trend in the next two years, and the quarterly decline will be reduced by 0.6 percentage points on the basis of the previous quarter.

According to GLII data, except for the price of imitation lumens 1W high-power LEDs, which fell by more than 10% in 2012, the price of other types of lamp beads fell by less than 10%. Among them, 3528, 5630, high-power series LED lamp beads narrowed the most obvious decline, the price decline from Q3 2011 to Q2 2012 decreased by nearly 7 percentage points.

Description: Integrated / COB high power price unit: yuan / W

From the specific product price reduction data, 3528 (small power 0.06W / 7 lumens) white light lamp beads in the first half of the first quarter average price decline is the smallest, only about 7.4%; visit lumens high power (1W / 100 lumens) white light beads In the first half of the year, the average price decline in the single quarter was the most obvious, with the decline narrowing from 11.3% in Q1 to 7.8% in Q2.

Figure 2 Changes in technical prices of major LED white light bead products in the first half of 2011-2012



Source: Gaogong LED Industry Research Institute (GLII)

In terms of enterprises, from the second half of 2010 to the end of 2011, due to the amplification of the average price drop of LED white light bulbs, the gross profit margin of some LED packaging companies fell rapidly from the high of 48% to 25% at the end of 2011. Due to the narrowing of the decline in the price of LED white light bulbs in the first half of this year, the gross profit margin of corporate products has only slightly decreased, and the gross profit margin of some enterprises has remained basically unchanged in the first half of the year.

Medium power lamp bead unit lumens price advantage outstanding
GLII data shows that the price drop of the power LED white light lamp in the first half of the year is still relatively obvious, and the price drop in the second quarter is slightly higher than that in the first quarter.
GLII believes that since 2011, the price of medium power (0.2~0.5W) LED white light bulbs has changed greatly, which is mainly related to its application market.

Since 2010, some LED lighting application companies have used medium-power LED white light beads as light sources in LED fluorescent tubes, LED rigid light strips, LED bulbs, and LED corn lamps. However, due to the immature early technology, the application of lamps frequently has problems with spots and bright spots, and the cost is high, which makes the medium-power lamp beads appear to be short-lived with unstable market demand and large price changes.

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