Unity Opto Declining Revenue in May Caused by Philips Pricing Strategy

Taiwanese LED manufacturer Unity Opto has seen its revenue in May 2015 slide 30%, due to Dutch lighting conglomerate Philips aggressive pricing strategies.

In April, Philips started to sell two 60W LED bulbs for less than US$5 in North America, and its branches in Asia has also continued the low pricing strategies throughout 2015.

Philips pricing strategies has forced Unity Opto to move a new product launch date to June, way ahead of the scheduled 3Q15 release date. The new product with cost advantages will appear on the market earlier to meet the fast changing market situation, and is expected to bring the company’s revenues back on track in July.

Unity Opto reported its consolidated revenue for May was NT $652 million (US $20.94 million), down 30.32% compared to NT $936 million revenue in April. However, the company’s revenue for May was up 5.6% YoY, and its aggregated revenue for the first five months of 2015 increased 18% to NT $3.93 billion.

The LED bulb elimination race has been moved ahead because of Philips strategies, said Unity Opto Chairman Alpha Wu.

However, the company spokesperson Jacky Wen projected healthy revenue growth in 2Q15, due to its fairly good product portfolio. 

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