Anticipation of Chinese Labor Day Sales Caused Prices of LED Light Bulbs to Drop Significantly in April, Says LEDinside

The global average sales price (ASP) of 40W-equivalent (equiv.) LED light bulbs fell 5.9% in April compared with the prior month, arriving at US$9.7, while the ASP of 60W-equiv. LED light bulbs fell 7.2% to US$13.1.
LED light bulb prices in China have been on a downtrend because of sales activities related to the Chinese Labor Day holiday period, said Allen Yu, analyst for LEDinside, a division of TrendForce. ASPs of LED light bulbs in other Asian regional markets have also dropped due to promotional pricing of some newly arrived products. Prices have also kept falling in Europe and the U.S.
Decline in package prices was expected as demand gradually shifted to the mid-power segment
Prices of 0.2W LED packages fell significantly in the first half of 2015, when their demand was at its highest and package manufacturers also aggressively lowered their prices to stay competitive. Since then, prices of 0.2W packages have fallen to the point where manufacturers have difficulty to make significant further reduction. On account of shrinking margins for standard LED products, manufacturers began to promote mid-power 0.5W packages in the latter half of 2015. This led to a rising demand for these products and an inevitable decline in their prices as more manufacturers competed in this market segment. In April, prices of mid-power 5630 LED packages on average fell by 6.5% monthly. International branded package suppliers such as LG and Lumileds experienced some price decline for their mid-power 5630 products as well. The mid-power 2835 package type is now the mainstream specification for the lighting market, and the change in its monthly average price in April was a drop of 1.2%.

Prices of 0.5W LED components belonging to the 5630 and 2835 package types continued their descent in the Chinese market in April. On the other hand, prices of 0.2W 2835 LED products and 1W 3030 products saw only minor changes during the same month.


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