Softening Demand for LED Brings Pressure of Price

Published:2011/2/11 2:32:00 Author:Amy From:SeekIC

The latest price investigation which conducted by LEDinside, a TrendForce-owned LED research institution, shows that the demand for LED application in forth quarter of 2010 still did not rebound. For instance, the need for lighting products is not as much as expectation and the large size panel inventory are still under adjustment. As a result, the price pressure of LED remains since the third quarter and no signs of easing.

LED for large size panel application drops by 5% to 9% and the most obvious decline is TV backlight; high power LED for lighting application slips more than 12%. As mobile phone concerned, the LED is relatively stable in price in accord with its demand which is only of seasonal decrease by 3%.

In the fourth quarter of 2010, the amount of shipment for large and medium panel is less than expectation as well as LED for backlight application. Therefore, the prices of main profiles like 5630 decline 9% with the price at 0.11~0.15 dollars; while backlight of LCD screen for laptop application drops by 5%~6%.

LEDinside indicates that LED products for mobile phone backlight application such as 0.4t and 0.6t will drop by 3% by their stable shipment and price. With regard to high power LED for lighting application, the price will slip sharply due to weak demand and inventory pressure. The main profiles of this season like 100-120lm are predicated to decrease by 12%.

In consideration of the demand for large size backlight application which in much inventory pressure, LEDinside forecasts that LED price will have resurgence in the first quarter of 2011. Therefore, the price pressure can be eased after first quarter. It is predicted that in the first season of 2011, the price of LED for LCD TV application will reduce by 9% while high power LED will drop at least two digitals due to pressure of inventory clearance. The related integrated circuit is IR2110PBF.

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