LED bulbs are likely to see a boost in demand sooner than expected as prices are expected to hit a “sweet spot” over the next two years, an industry information institute said yesterday at an international forum in Taipei.
LED bulbs, one of which can replace a standard 40 watt bulb, are estimated to cost US$10 each, the best price the market can expect, by the second quarter next year, said LEDinside, a research division of TrendForce, at the two-day annual forum.
LOWER PRICES
The average selling price of the bulbs dropped by about 20 percent to US$23.60 in September compared with the same period last year, according to the information agency.
The prediction was based on a 35 to 40 percent price decline in LED products every year, as well as lower prices for other electrical lighting components, LEDinside said.
SWEET POINT
The price of LED bulbs equivalent to 60w fixtures is likely to reach a sweet point by the middle of 2013, it added.
With market share growing more rapidly, the LED bulb industry could recover sooner than expected.
The lowest price range was formerly recorded in Japan, but South Korea emerged as the most competitive country in the field after a bulb product priced at just under US$12 was introduced in May, according to the agency.
The products of the top three LED brands cost between US$12 and US$14, which is expected to increase market acceptance and expand overall market consumption.
The US dollar was trading at NT$29.7 at 10am today on the Taipei Foreign Exchange, as the New Taiwan dollar gained NT$1.364 from the previous close last week. The NT dollar continued to rise today, after surging 3.07 percent on Friday. After opening at NT$30.91, the NT dollar gained more than NT$1 in just 15 minutes, briefly passing the NT$30 mark. Before the US Department of the Treasury's semi-annual currency report came out, expectations that the NT dollar would keep rising were already building. The NT dollar on Friday closed at NT$31.064, up by NT$0.953 — a 3.07 percent single-day gain. Today,
‘SHORT TERM’: The local currency would likely remain strong in the near term, driven by anticipated US trade pressure, capital inflows and expectations of a US Fed rate cut The US dollar is expected to fall below NT$30 in the near term, as traders anticipate increased pressure from Washington for Taiwan to allow the New Taiwan dollar to appreciate, Cathay United Bank (國泰世華銀行) chief economist Lin Chi-chao (林啟超) said. Following a sharp drop in the greenback against the NT dollar on Friday, Lin told the Central News Agency that the local currency is likely to remain strong in the short term, driven in part by market psychology surrounding anticipated US policy pressure. On Friday, the US dollar fell NT$0.953, or 3.07 percent, closing at NT$31.064 — its lowest level since Jan.
The New Taiwan dollar and Taiwanese stocks surged on signs that trade tensions between the world’s top two economies might start easing and as US tech earnings boosted the outlook of the nation’s semiconductor exports. The NT dollar strengthened as much as 3.8 percent versus the US dollar to 30.815, the biggest intraday gain since January 2011, closing at NT$31.064. The benchmark TAIEX jumped 2.73 percent to outperform the region’s equity gauges. Outlook for global trade improved after China said it is assessing possible trade talks with the US, providing a boost for the nation’s currency and shares. As the NT dollar
PRESSURE EXPECTED: The appreciation of the NT dollar reflected expectations that Washington would press Taiwan to boost its currency against the US dollar, dealers said Taiwan’s export-oriented semiconductor and auto part manufacturers are expecting their margins to be affected by large foreign exchange losses as the New Taiwan dollar continued to appreciate sharply against the US dollar yesterday. Among major semiconductor manufacturers, ASE Technology Holding Co (日月光), the world’s largest integrated circuit (IC) packaging and testing services provider, said that whenever the NT dollar rises NT$1 against the greenback, its gross margin is cut by about 1.5 percent. The NT dollar traded as strong as NT$29.59 per US dollar before trimming gains to close NT$0.919, or 2.96 percent, higher at NT$30.145 yesterday in Taipei trading
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