LED Bulb Prices Moving Downward

Taipei, Oct. 20, 2011 (CENS)--The oversupply of LED backlights for TVs has become a downward pressure on LED bulb prices, inspiring LEDInside, which tracks the LED industry, to expect that average price of the bulbs will decline by US$1 for per 1,000 lumens in 2015.

Also, the market consulting firm estimated 2012 would be the year when LED-lighting manufacturers will begin consolidating, growing and taking off thanks to cost factor.

LEDInside's surveys show that average price for LED bulbs replacing 40W incandescent bulbs already fell under the US$50 level, to US$49.7 for per 1,000 lumens, while the price of 60W equivalent LED bulbs slipped to US$52.3 for per 1,000 lumens until September.

At the price markdown ratio, currently, on average, a 40W equivalent LED bulb goes for US$23.1 in average retail while a 60W equivalent LED bulb is retailed at NT$42.3 at global level.

LEDInside estimated that LED blub prices will continue falling after dropping 3% in September from a month earlier. Retail prices of 40W-equivalent LED bulbs have dropped the most especially in Japan and South Korea while 60W equivalent LED bulbs have posted the sharpest price drops in Europe.

In South Korea alone, retail price of a 40W equivalent LED bulb fell to only US$12.2 apiece in September.

LEDInside estimated Japanese government would again introduce subsidy this winter to encourage consumption of LED bulbs in consideration that the lamps could ease electric power strain caused by the energy-guzzling heating systems.

The organization estimated shipments and revenue of the bulbs would increase steadily into this quarter to keep up with ramping demands.

As for backlight market, the organization estimated lukewarm demands for TVs lit by LED backlight will last into this quarter as a result of the European debt crisis and economic slowdown worldwide. However, heavyweight TV makers as LT and Samsung will release less expensive LED-lit TVs in hope of boosting procurement sentiment in the upcoming Christmas shopping season.