The penetration rate of LED lighting market continues to rise, and the price competition is becoming more intense. LED industry revealed that Philips, the international lighting leading factory, has set a low target of 2016 LED bulbs to reduce its ex-factory price to 0.8 US dollars, a drop of more than 20%. The pressure on the upstream supply chain industry has increased greatly. However, the recent exchange rate of the US dollar has continued to strengthen, which is conducive to ease the pressure on upstream manufacturers to reduce prices. Recently, the mainland LED bulb assembly factory has shouted the first season to reach the target price of 0.8 US dollars for the LED bulb. I am afraid that it will ignite a new wave of LED lighting terminal market price wars.
The price of LED bulbs continued to decline sharply. The price of upstream LED components was close to the cost line. The profitability of the manufacturers was severely tested. Although the overall LED bulb shipments increased, it did not help the manufacturers to improve their operations. Some competitors were forced to withdraw from the market. The LED industry pointed out that there is almost no difference between LED bulbs and energy-saving bulbs. In 2016, LED bulbs still have price reduction pressure, but the annual decline is expected to slow down.
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