LED bulb price dipped sharply in January

February 22, 2012 // By Christoph Hammerschmidt
According to a price survey conducted by market research company LEDinside, LED bulb ASP continued to fall in 12'Jan following the steep price drop in 11’Dec., with the ASP of 40W equivalent LED light bulb sliding to US$19.6. The price competition in South Korea was the fiercest – the light bulb prices of the first tier brands have plunged below US$10.

LEDinside states that the ASP of 40W replacement products fell nearly 7% in January; South Korea still held the most competitive ASP at US$10.4, dipping 13% with the lowest price at US$8.2. On the other hand, the ASP in Japan merely fell by 1%, unable to maintain a sharp downtrend in 4Q11. Due to the Japanese Yen appreciation, the price fall appears modest after conversion to US dollar. Moreover, LED bulb prices in Japan has undergone a sharp drop before, so there is little room for the prices to fall. The price in the United Kingdom fell by approximately 9%; with more new products entering the market, while 40W replacement products' prices have dropped below US$30. The price in the United States dropped by 6% in 12'Jan.

As for the 60W equivalent LED light bulb, the ASP in 12'Jan fell by about 4%; the prices in most areas remained above US$30, with the only exception in South Korea at US$17.3. According to LEDinside's research, on account of the high technology barriers of thermal dissipation, 60W replacement products are relatively few in the market, but recently there is a trend of  more new products being released in Japan and the United States.

The market reserarcher indicates that as opposed to 4Q11, it was the price of 40W equivalent LED bulb that experienced more drastic price drop in 1Q12. Aside from South Korea, the 40W equivalent LED bulb's prices in North America and the UK have been sliding toward US$10. The lowest prices in most areas are expected to fall below US$10 in 2H12.

At present, the major brand vendors, in particular, South Korean vendors are actively participating in the price war and lowering prices for their products, launching 40W and 60W replacement products with significantly lower prices. The world-wide ASP of LED light bulbs has been in a strong downtrend; it is only a matter of time that the LED light


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