LED bulb price reduction increases market penetration

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According to Warburg Securities, the average retail price of LED bulbs replacing traditional 60-watt incandescent bulbs fell significantly in December, with the average monthly selling price falling by 16 and the lowest selling price reaching $18.9. In the LED bulb category that replaces the traditional 40-watt incandescent bulb, the manufacturer's product market has a minimum market price of $11.1.
In the replacement of the 60-watt commodity segment, the most obvious price declines in December last year were the Korean market, the US market and the Japanese market. Among them, South Korea has a minimum price of $18.9.
In replacing the 40-watt commodity segment, the most obvious price decline in December last year was still in the Japanese market. The most competitive is still in South Korea, and the current lowest price is about $11.1.
At present, the LED lamp bulb retail price changes are still replacing the traditional 60-watt commodity segment. Since this one-size product has the largest proportion in the bulb market and is closer to the main lighting source specification, all major brands have actively placed the card position, hoping to expand the market with more price-competitive products.
In fact, high prices have always been one of the reasons for the low penetration of LED lighting. We believe that with the overcapacity of global LED upstream chips and midstream packaging, and the fierce competition of downstream applications, the price of LED bulbs is gradually decreasing.
In 2012, the European Union will completely ban incandescent lamps, and China, the United States, Canada, Australia and other countries will gradually ban incandescent lamps. The decline in the price of LED bulbs will promote the accelerated application of LED lighting in the world, and increase the scale of the entire LED market, which will benefit the listed companies in the entire LED industry chain.

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