TrendForce's LED Research Center (LEDinside) latest price report pointed out that in May 2019, the prices of some high-power and medium-power LED packaging products in the Chinese market continued to fall.
TrendForce analyst Wang Ting said that in response to the drop in chip prices, LED package prices continued to decline in May. The impact of the escalation of the Sino-US trade war has not yet been reflected in the price of the LED packaging market. Manufacturers are mostly on the sidelines. It is expected that prices will continue to be adjusted based on changes in upstream chip prices. The price of high-power 5050 and 7070 products has fallen by 1%-4%; the price of medium-power 2835 products has fallen more significantly, and the prices of 0.2W and 0.5W products have been reduced by 4.7% and 5.1%, respectively.
In the automotive LED packaging segment, the global automotive market continued to be sluggish and sales declined in the first half of 2019, and the prices of mainstream automotive LED packaging products were lowered by 2%-3%. In 2018, the automotive LED revenues of manufacturers such as Osram and Lumileds were flat or slightly declining, while the Japanese auto market performed relatively brightly in 2018, driving the revenue growth of manufacturers such as Nichia and Stanley.
Global bulb prices continue to fall, and the escalation of the Sino-US trade war has not yet affected market prices
In terms of global LED bulbs, the price of LED bulbs continued to fall in May 2019. The average retail price of LED bulbs replacing 40W incandescent lamps fell 1.1% to US$5.9; the average retail price of LED bulbs replacing 60W incandescent lamps fell 0.5% to US$7.0. Compared with the same period last year, the LED bulb products that replaced the 40W and 60W parts fell by 6% and 7%, respectively.
As the LED lighting market has entered a mature stage, the global end product prices have also continued to decline as the upstream chip and package prices continue to decline. Looking at the German region, the prices of LED bulbs that replace 40W and 60W incandescent lamps have fallen by 2.0% and 1.6%, respectively; in the Asian region, affected by international exchange rate fluctuations, market retail prices have fallen more significantly. South Korea dropped by 4.3% and 4.4%, China dropped by 1.5% and 0.4%, while in Japan, due to several high-priced new products, the average market price rose by 3.3% and 0.4%, respectively.
As for the US, the escalation of the Sino-US trade war has not had a substantial impact on the US LED bulb market price, and most lighting brand manufacturers are holding a wait-and-see attitude. In May, the price of LED bulbs that replaced 40W incandescent lamps dropped by 2.8%; the part that replaced 60W increased slightly by 0.2%, mainly because smart lighting products were popular in the market, and the price of products increased significantly, which pushed up the overall average price. (Text: LEDinside/Terri, Christine)
