As LED prices drop, LED lighting in emerging markets takes off
Global ASP for 60 W equivalent LED prices downed by 3.3% to US$ 22.6, with falls most obvious in Europe. Global 40 W equivalent LED ASP fell by 0.6% to US$ 15.5 in July 2013, with U.S. prices plunging the most by 8.4%, said LEDinside. Some existing products have exited the market, while prices for other products continued to slide, and there have been no new products on the market this month. In UK ASP grew by 3.6% in July, due to price fluctuations of existing products and price increase for certain products. In addition, no new products were released in UK that month. Furthermore, in Germany ASP fell by 3.9% in July mainly due to currency appreciation and stabilization or gradual decline of existing product prices.
In Japan, 40 W equivalent LED lamp ASP advanced 4.2% caused by price fluctuations in existing products and currency depreciation. ASP in Korea gained 9.8% in July caused by unchanged existing product prices and currency depreciation. In addition, China maintained 40 W equivalent LED lamp ASP in July at US$ 10.2.
The ASP for 60 W equivalent LED lamp in July dipped by 3.3% to US$ 22.6. Prices for UK and Germany fell by 14.1% and 9.6% respectively in July. In UK highly priced existing products exited the market, while for other products a trend of price fluctuations emerged. In Germany existing product prices dropped as more new products were released on the market that month. In U.S. prices remained unchanged, but prices for certain products soared due to ending promotions. Also no new products appeared on the market that month.
According to the market researchers, lighting manufacturers quickly enter emerging markets as residential lighting market demand warms up In July. Taiwan saw a surge of new products in the market, top brands including Everlight, Toshiba and Philips all launched new products and lowered prices. Everlight released a new 8.5 W standard LED bulb with luminous flux of 827 lumens. The price for four of these LED bulbs plus a plug adaptor is about US$ 25.4. The Philips 10 W LED bulb has a luminous flux of 800 lumens, and its retail price in Taiwan is lowered to US$ 14.3. In addition, local Taiwanese companies including Delta Electronics Inc., Tsann Kuen Enterprise Co. LTD, China Electric, Tatung Company and ADATA Technology Co. have started to enter the LED lamp market with their own light bulbs. LEDinside estimates LED bulb shipments grew by 20% in 2013 to about 1.61 million.
LEDinside pointed out that the Japanese LED lamp market, which had the highest demands over the last two years, has saturated. Thus, many international LED lighting manufacturers are actively expanding their presence in emerging markets. Manufacturers’ active product release and pricing strategies is quickly stimulating LED residential lighting market developments. It is estimated global LED bulb ASP will quickly decline and reach sweet point when price fluctuations caused by the launch of new products stabilize.