Wed, Nov 27, 2013 - Page 14 News List

LED sales forecast to jump 68%

MARKET DOMINATION:With dipping prices for LEDs, the bulbs are increasingly replacing traditional energy-saving lighting and dominating the mass market

By Helen Ku  /  Staff reporter

Global shipment of LED lighting products are expected to jump 68 percent to 1.32 billion units next year as prices for mainstream 40-watt and 60-watt equivalent LED bulbs have fallen to the sweet spot of US$10 per unit in most parts of the world, local market researcher TrendForce Corp (集邦科技) said in a report.

As LED bulb prices have dropped to a comfortable level to replace traditional energy-saving lighting, most retailers, such as furniture maker IKEA, have distributed LED bulbs on the mass market, TrendForce said in a report on Monday.

Average selling price of mainstream 40-watt equivalent LED bulb dropped 2.3 percent to US$15.8 per unit in the global market last month on intensifying price competition, TrendForce said.

Meanwhile, the selling price of a 60-watt equivalent LED bulb rose 1.2 percent to US$21.6 last month as LED bulbmakers launched improved products, which carried a higher price tag, TrendForce said in the report.

“While the average selling prices of LED bulbs are falling steadily, the price span for different products remains wide, mainly because not every company is willing to sacrifice product quality for profits,” Roger Chu (儲余超), analyst at TrendForce’s LED market research division, said by telephone yesterday.

“Price remains the biggest

factor behind consumer purchasing behavior for LED products,” Chu said.

“With intensifying competition, LED suppliers hardly make decent profits, but they still need to roll out commercials to gain brand awareness and market share,” he added.

In Taiwan, because of the increased promotions offered by firms such as Everlight Electronics Co (億光電子) and Leotek Electronics Corp (光林電子), current market prices of 40-watt LED bulbs vary from about NT$100 to NT$300 as of last month, Chu said.

Meanwhile, prices of 60-watt LED bulbs ranged from NT$200 to NT$500 last month, he added.

“Taiwanese LED brands tend to adopt mass marketing strategies to increase consumer awareness, and that’s the reason why most firms can stay competitive, while facing price competition in the global market,” Chu said.

The 800-lumen 60-watt equivalent LED bulbs are popular because they provide a sufficient amount of brightness for household use, Chu said.

Lumen is a measure of the total amount of visible light emitted by the product.

However, because 60-watt equivalent LED bulbs are more expensive than 40-watt ones, consumers have been more willing to replace traditional incandescent bulbs with 40-watt LED bulbs, Chu added.

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