Low-Price Strategy Caused Steep Drop in December Prices, Penetration Rate to Surge

January 18, 2012---According to the latest price survey of LEDinside, the LED research division of TrendForce, the ASP of 60W equivalent LED light bulbs dipped by 16% in December, with the lowest price plummeting to US$18.9. As for 40W equivalent LED light bulbs, the lowest price dropped to US$11.1.

60W Equivalent LED Bulb Prices Plunged

Source: LEDinside

LEDinside indicates that the prices of 60W equivalent LED light bulbs plunged even further in December – ASP slid by 13% to US$33.5, which marked another steep drop since the 11'Septmeber price drop in the United States. Notably, the price in South Korea also reached a low of US$18.9. According to LEDinside, the ASP dipped 17% in the United States and 15% in Japan.

40W Equivalent LED Bulb Prices Hit a Low of US$11.1

Source: LEDinside

In regard to 40W equivalent LED Bulbs, the downtrend persisted in December and the prices experienced the most evident drop in Japan, falling approximately 5%. According to LEDinside, South Korea still holds the most competitive price for 40W equivalent LED bulbs, with the lowest price at US$11.1.

Perspectives from LEDinside
LEDinside states that the prices of 60W LED equivalent LED bulbs have undertaken a more evident drop. Since 60W equivalent bulbs takes up the biggest light bulb market share and is closer to the mainstream lighting specifications, the global big names have been taking a more aggressive approach in this area and hope to gain a bigger market share with more competitive prices.

However, LEDinside noticed that on account of the varying criteria among different countries for replacement bulbs, certain products may be able to meet the criteria of brightness, color temperature but fail to meet other less important ones. Hence, when manufacturers are striving to lower the prices in the hope of increasing market acceptance, they also need to emphasize more on the bulbs’ critical features such as beaming angle; in fact, these specifications will be one of the major focal point for the new products to be released in 2012.
###
 

trendforce