LEDinside: LED Bulb Prices Rebound in China in April as Low Quality Products Exit Market

Global 40W replacement LED bulbs Average Sales Price (ASP) dropped 1.0% in April 2015 to US $11.8, according to LEDinside’s latest LED bulb retail price survey.

Global prices for 60W equiv. LED bulbs slightly decreased 0.1% to US $15.9. Price declines was most evident in Europe and North America region, especially in UK. In contrast, LED bulb prices in Asia has rebounded, this was most markedly observed in the Chinese market where low priced and poor quality products have gradually exited the market, leading to the brief price uptick.

In the UK market, 40W equiv. LED bulb prices further declined 4.6% in April, after a 4.7% price drop in March. Lighting products that have underwent earlier price upticks all dipped. For instance Osram’s 6W 470 lm LED bulb prices declined 35% to US $8.07, while Auraglow 7W 480 lm LED bulb prices plunged 30% to US $6.2. Other LED bulb prices that have plummeted in the UK, include Toshiba 7.5W 470lm LED bulbs and Philips 6W 470 lm LED bulbs.

In Germany, 40W equiv. LED bulbs have continued its steady price decline since 4Q14, but price falls gradually eased. In April, LED bulb prices were down 2.1%, while Samsung, Toshiba, Osram and other renowned LED brands have further lowered retail prices.

In Asia, 40W equiv. LED bulb prices dropped 5.9% in Taiwan, since certain manufacturers sales promo have dragged down overall market retail prices, for instance Neo-Neon Holdings LED bulb prices tumbled more than 50% to US $3.04. In China, LED bulb prices climbed up 4.1%, marking the first price surge in 2015 as certain low-priced products exited the market. In addition, certain product prices increased for example Pak Corporation’s 5W 500 lumen LED bulb prices increased 6.55% to US $2.47. Other market regions price fluctuations remained small, currency exchange fluctuations has been the main reason.

As for 60W equiv. LED bulbs, prices dropped 6% in April and was the region where prices fell the most. A large number of LED bulbs ASP decreased, with only a small portion of LED bulb prices plummeting. For instance, Philips 9.5W 860lm LED bulb prices dropped 38% to US $6.2, while Osram’s 10W 806 lm LED bulb prices declined 25% to US $11.18. Prices in Germany also slid 2.6%, resulting in smaller price fluctuations. LED bulb prices in U.S. also slid 2.8%, with certain product price fluctuations much larger than others including Philips and Osram brands. In China, LED prices rose 1.1% as low priced products were withdrawn from the market, leading to the price uptick. Market prices in other regions remained relatively stable.

Chinese manufacturers tend to use low-pricing strategies to acquire market share, hence it is difficult to ensure product quality. Industry developments has led to the gradual abandonment of low priced and bad quality products. Market restructures are also spurring small manufacturers to withdraw from the market, but from a long term perspective short term price declines is just the current market response to market demands. Prices have continued to plunge, but the cause of declines will eventually shift from market competition to technology.

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