Year-End Promotions Caused Prices of LED Light Bulbs to Drop Significantly at the End of 2016

Since November 2016, LED light bulb vendors have lowered prices of their products for regional markets including Japan, Europe and the U.S. as part of their year-end promotions. The downtrend in prices became more noticeable at the end of the year. “Compared with the prior month, global average sales price (ASP) of 40-watt equivalent LED light bulb fell 3% to US$8.7 in December,” said Allen Yu, analyst for LEDinside, a division of TrendForce. “The global ASP of 60-watt equivalent LED light bulbs also saw a monthly decline of 2.4%, arriving around US$12.”
 
(Photo Credit:LEDinside)
 
China’s package market saw price hikes due to rising material costs in upstream of supply chain
In China’s LED package market, prices of 0.2-watt 2835 LEDs increased by 2.4% on average in December last year compared with November due to the tightening of supply for standard packages. Those suppliers that raised prices on standard packages include well-known Chinese brands such as Honglitronic and MTC. On the other hand, prices of mid- and high-power packages did not rise in December, and 0.5-watt LEDs of 2835 and 5630 types saw relatively stable price trends. Prices of 1-watt 3030 LEDs actually fell by 1.6% on average from November.
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