LEDinside:Prices Stabilize in Global LED Bulb Market and China Package Industry

The global average sales price (ASP) of 40-watt equivalent LED light bulbs in June fell 0.2% compared with the prior month to US$9.5, says the latest price report from LEDinside, a division of TrendForce. The global ASP of 60-watt equivalent light bulb also dropped 0.1% monthly to US$12.9. 
 
LEDinside analyst Allen Yu said LED lighting demand bounced back in the second quarter, leading to the stabilization of prices across all segments of the supply chain from chips and packages to end products. While the decline of LED light bulb prices moderated in the second quarter, the highly competitive market and technological advances ensure that the downtrend will continue through the year. For the first half of 2016, the global ASP of 40-watt equivalent LED light bulbs dropped 10 % compared with the same period a year ago, while the 60-watt counterparts saw a decline of 11%.
 
In the Chinese package market, the ASP of the most widely used 2835 LED remained steady in June. The ASP of high-power 3030 LED also ceased to slide. On the other hand, the ASP of standard 5630 LED in the Chinese market fell because of adjustments made by several international suppliers. Yu pointed out that the Chinese package market have finally begun to recover in the second quarter after experiencing plummeting prices last year. Though prices are gradually stabilizing, package suppliers’ profitability outlook is still unfavorable in the short term. Product margins are generally low and suppliers face strong resistance to raising prices.
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