LED bulb falling prices are expected to increase penetration

Our data shows that the average retail price of LED light bulbs replacing traditional incandescent 60-watt light bulbs declined significantly in December last year. The average monthly price fell by 16% and the minimum price reached 18.9 US dollars. In the category of LED bulbs that replace traditional 40-watt incandescent bulbs, Dachang’s product market is priced at US$11.1.

In replacing the 60-watt commodity segment, the most noticeable price drop in December last year was the Korean market, the US market, and the Japanese market. Among them, South Korea has a minimum price of 18.9 US dollars.

In replacing the 40-watt commodity segment, the most significant price drop in December last year was still in the Japanese market. The most competitive is still in South Korea. The current lowest price is about US$ 11.1.

At present, the change in the retail price of LED bulbs is still a major factor in replacing the traditional 60-watt commodity segment. As this one specification has the largest proportion in the bulb market, it is also closer to the main lighting source specifications. Therefore, all major brands are actively deploying card slots, hoping to expand the market with more competitive products.

In fact, the high price has been one of the reasons for the low penetration of LED lighting. We believe that with the phased overcapacity of the global LED upstream chip and midstream packaging and the fierce competition of downstream applications, the price of LED bulbs is gradually falling.

In 2012, the EU will completely ban incandescent lamps. China, the United States, Canada, Australia and other countries will gradually ban incandescent lamps. The decline in the price of LED light bulbs will promote the accelerated application of LED lighting in the global market, and increase the scale of the entire LED market. This will benefit the listed companies in the entire LED industry chain.