Osram Sylvania Shortens Bulb Lifetime to Gain Traction in LED Lighting Market

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Osram Sylvania is introducing a novel strategy to reduce LED bulb manufacturing costs, and keep it competitive on the market, according to a report from Forbes.

Instead of making LED bulbs that last 20 years or more and can stay on from 20,000 to 25,000 hours long, Osram’s U.S. branch has halved the bulb lifetime to around 11,000 hours.

The benefits of cutting short the bulbs life expectancy has enabled the company to lower 60W equivalent A19 LED bulb prices to US $3, compared to competitors, said Alfred LaSpina, LED product group manager at Osram.

“When LEDs get more efficient (and emit more lumens per watt), you don’t need as many LEDs,” he said.

There are other comparable type of savings in 10-year LED bulbs, which can generate the same amount of light as 75W incandescent bulbs and others.

Osram has also especially redesigned the “10-year” bulbs, so they would resemble incandescent bulbs in color temperature performance and fit in lamp sockets better, said LaSpina.

McKinsey & Co. estimates worldwide revenue for LEDs in general lighting will balloon from US $6.5 billion in 2011 to more than US $75 billion by 2020, and LED market share in the lighting sector would grow from 45% in 2016 to reach 70% by 2020.

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