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Price decline slows LED package device demand
Zhang Luhua, marketing director of Smale, believes that the entire industry has entered the general market cycle. In addition, the government is still giving continuous support, coupled with the concept of green energy conservation and environmental protection, LED products are being recognized and accepted by everyone, and the market development has reached an outbreak. Recently, Philips Lighting completed the procurement negotiations for LED device suppliers in the first half of 2017. It is estimated that the purchase price of components will decrease by 5-7% compared with the first half of this year. The proportion of the decline has been considerably narrower than in previous years. At present, as the price of LED devices has approached the cost red line, the price decline has narrowed. At the same time, due to the growing market demand for downstream applications, LED package manufacturers are no longer accepting low purchase quotations from downstream customers. Considering the limited decline in device prices, Philips Lighting is expected to reduce device purchases in the first half of next year, down 10% from the first half of this year. Zhang Luhua, marketing director of Smale, believes that the entire industry has entered the general market cycle. In addition, the government is still giving continuous support, coupled with the concept of green energy conservation and environmental protection, LED products are being recognized and accepted by everyone, and the market development has reached an outbreak. Although the price of packaged devices has fallen to the cost red line, demand will not fall, but there will be a rising trend. However, due to the narrowing of the price decline of devices, will LED lighting manufacturers consider reducing the amount of LEDs, or whether the demand for high-efficiency LED devices will increase, which is a concern of most people. Wang Gaoyang, deputy general manager of Hongli Zhihui, said that the demand for packaged devices will continue to grow in the future, but the growth rate will slow down. In view of the current technical level of LEDs, in order to achieve high luminous efficiency, nothing more is to increase the high luminous efficiency by reducing the current used by some products. Therefore, under the existing conditions, if the products with higher light efficiency will increase the number of lamps. Zhang Luhua said. In the design of high-efficiency products, performance and cost are always contradictory, and only a part can be integrated to achieve a balance. If you use a better light source and reduce the current usage of the light source, you can achieve the goal to some extent, but the cost will multiply. For LED lighting companies, on the one hand, the decline in the price of packaged devices has narrowed, and on the other hand, there is price competition in the downstream market. How to survive better becomes a common problem. In the future, similar to large-scale traditional manufacturing will become the direction of lighting enterprises. At present, the material price is relatively stable, and the basic bottoming is to become the primary task of LED lighting enterprises. Wang Gaoyang pointed out that lighting companies can only continue to exist in the future if they are scaled up, have the ability to integrate resources, and take differentiated markets and product differentiation routes. The so-called good internal strength is actually to expand the production scale of enterprises, reduce manufacturing costs, increase product profits, and thus enhance the competitiveness of enterprises themselves. Zhang Luhua said. At present, the growth rate of LED's own light efficiency is also slowing down. If new technologies come out, it is believed that the demand will increase, especially as some high-end demand in the North American market continues to be released, and the demand for high-efficiency LED devices will continue. increase. The large-scale LED packaging device industry has formed a pattern of Evergrande. In the future, SMEs need to continue to produce by taking a market segment, such as infrared, deep ultraviolet, plant lighting, and lighting advertising. Zhang Luhua finally mentioned.