LED application continues to expand, but industry players are rushing to expand production, causing oversupply, making the average annual product price decline of the LED industry in the past about 20% to 30%. In 2008, the consumer market demand was weak, and the Japanese factory took the lead in price competition, resulting in a surface. The price of Surface-MountDevice (SMD) LED products has dropped by more than 30% in the first half of 2008. The LED industry has admitted that even in the traditional peak season of the third quarter, it will not rule out that it will continue to fall.
The LED industry pointed out that since 2008, Japanese manufacturers have taken the lead in price reduction, resulting in a downward pressure on the price of middle and high-end sideview products. The average selling price (ASP) has dropped by 20% to 30%, leading to Taiwan. Regional LED operators (Crystal, etc.) were forced to lower prices and squeeze product gross margins. In addition, the demand for mobile phones from mainland white brands and international manufacturers slowed down. In the second quarter, the market rebound rate was slower than expected, resulting in pressure on price cuts, but the decline was slightly stable. Consumer market confidence will be the key to the third quarter results.
Taiwan LED industry said that the price of metering products is subject to poor market demand and industry chain effect, but the price of topview products is falling, which is due to the competition of Taiwanese industry peers, due to the 7-10 inch panel in 2007. The demand for products has exploded, and the LED industry has also expanded its production capacity. Under the technical threshold and the increase of suppliers, direct-type products are also difficult to avoid falling prices, and some products have even fallen as much as 50%.
Not only the price of Taiwan's ASP has fallen, but the investment institution LazardCapitalMarkets pointed out that it has been affected by the positive price reduction promotion of Taiwan LED industry and the gradual loss of notebook computer (NB) LED backlight customers. The US LED chip maker Cree also faces a decline in average product prices and oversupply. The problem will affect short-term profitability.
With the upcoming season of the third season, the upstream chip factory believes that the product price continues to decline, depending on market demand, high-end metering products have gradually warmed up, plus the output of new products with brightness of 1,800~2,000mcd is not much. The opportunity for price cuts is small, and the increase in product gross profit is expected. However, the downstream packaging factory believes that although the market demand in the third quarter is rising, the pressure on the industry's production capacity is gradually increasing. If there are continued manufacturers to cut the price and grab the order, the market price will be difficult to stabilize. Even if the demand in the peak season increases, the price warning will be reduced. It still exists, and it is estimated that the price drop in a single season may reach 5%~10%.
The LED industry pointed out that since 2008, Japanese manufacturers have taken the lead in price reduction, resulting in a downward pressure on the price of middle and high-end sideview products. The average selling price (ASP) has dropped by 20% to 30%, leading to Taiwan. Regional LED operators (Crystal, etc.) were forced to lower prices and squeeze product gross margins. In addition, the demand for mobile phones from mainland white brands and international manufacturers slowed down. In the second quarter, the market rebound rate was slower than expected, resulting in pressure on price cuts, but the decline was slightly stable. Consumer market confidence will be the key to the third quarter results.
Taiwan LED industry said that the price of metering products is subject to poor market demand and industry chain effect, but the price of topview products is falling, which is due to the competition of Taiwanese industry peers, due to the 7-10 inch panel in 2007. The demand for products has exploded, and the LED industry has also expanded its production capacity. Under the technical threshold and the increase of suppliers, direct-type products are also difficult to avoid falling prices, and some products have even fallen as much as 50%.
Not only the price of Taiwan's ASP has fallen, but the investment institution LazardCapitalMarkets pointed out that it has been affected by the positive price reduction promotion of Taiwan LED industry and the gradual loss of notebook computer (NB) LED backlight customers. The US LED chip maker Cree also faces a decline in average product prices and oversupply. The problem will affect short-term profitability.
With the upcoming season of the third season, the upstream chip factory believes that the product price continues to decline, depending on market demand, high-end metering products have gradually warmed up, plus the output of new products with brightness of 1,800~2,000mcd is not much. The opportunity for price cuts is small, and the increase in product gross profit is expected. However, the downstream packaging factory believes that although the market demand in the third quarter is rising, the pressure on the industry's production capacity is gradually increasing. If there are continued manufacturers to cut the price and grab the order, the market price will be difficult to stabilize. Even if the demand in the peak season increases, the price warning will be reduced. It still exists, and it is estimated that the price drop in a single season may reach 5%~10%.
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