Search Results
Keyword：Allen Yu，
48 result(s)
2015/11/09
According to the latest report by LEDinside, a division of TrendForce, the global average price of 40W replacement LED light bulbs rose 28% monthly to US$111 in October, while the 60W replacement bulbs rose 35% to US$15 LEDinside analyst Allen Yu said that vendors in the US and Europe have called a truce in their price war after three consecutive quarters of downtrend Prices of some promoted products thus saw noticeable rebound in the first half of October LEDinside also reports that the Chinese LED package market saw prices falling in same month despite a demand upturn in the TV backlight application
LED package prices in China continue to slide as the industry’s overall capacity utilization rate remains low
After the slump in July and August, the Chinese LED package market began to recover due to a rise in the demand of LED TV backlight units However, prices of standard and mid-power lighting LED products continue to slide On a monthly basis, the average price of 02W 2835 products, which are mainly supplied by Chinese companies, dropped slightly by 16% in October In the 5630 package segment, OSRAM, Lumileds, Samsung and other major international suppliers led the charge in cutting prices for mid-power products The average price of low-power 5630 products also dropped by another 4% in October after it had fallen 679% in September Yu noted that capacity utilization rates of Chinese package companies will remain low in the short term, so price downtrend will persist despite that the market is starting to recover
A lull in promotional campaigns brings US and European prices back to normal
Prices of 40W LED replacement bulbs rose significantly in October The UK market saw an average monthly increase of 99% after witnessing relatively large declines for three consecutive quarters Some products that had been part of promotion deals also returned to their normal prices (eg an OSRAM 8W 470lm bulb rose nearly 30% to US$593) The average price in Germany also rose by 92% during the same period, though some products had even larger increases (eg a Philips 8W 470lm bulb rose by over 20% to US$2545) Prices have been generally stable in the US, but a few products saw wide swings in October A Feit Electric 75W 500lm bulb fell 11% to US$799, whereas a pack of four 6W 450lm bulbs from CREE arrived at US$2687, a 21% jump from US$2222 In Asia, prices were constant in October with the exception of the Japanese market, which saw a 45% drop
The end of promotions for some products also led to a general price rebound for 60W LED replacement bulbs in October The US market saw an average monthly increase of 92%, but again there were larger increases for some products A pack of two 10W 800lm bulbs from Sylvania rose 25% to US$1999; while a pack of three 96W 800lm bulbs from Feit Electric arrived at $US1879, up 232% The average price increase in the German market also reached 94% The price rally in Japan was smaller at 35%, with a few products seeing larger shifts in prices due to exchange rate fluctuations For the rest of the world, prices of 60W replacement bulbs remained constant in October
2015/10/13
The LED market conditions have been fairly challenging for manufacturers in 2015 with notable price declines throughout July to August, but improving market conditions in September has slowed down price drops of certain LED bulb products, according to a latest report from LEDinside, a division of TrendForce
Global average retail prices of 40W LED bulbs were down 09% to US $108, while 60W LED bulbs average retail prices slid 24% to US $145, according to the latest price report from LEDinside
“Compared to the sharp price falls observed in July and August 2015, the recovering LED market in September has eased LED bulb and package price drop,” said Allen Yu, an analyst of LEDinside
Rebounding LED market abates China’s LED package price fall
Among mid power LED package products, price adjustments in low power 5630 LED packages was most evident in September, with prices marked down by 679% Leading international LED package brands including Lumileds, Samsung, Seoul Semiconductor and LG Innotek have all lowered product prices In the short term, it will be difficult for the market to break free from anemic market conditions Chinese LED package manufacturers overall production utilization rates remained low, and most face oversupply issues that has led to the continual pricing downtrend
Ongoing LED bulb promotions in US and Europe
In the US 40W equiv LED bulb prices dropped 22% in September Bulb prices stabilized after sharp price declines throughout July and August, but some manufacturers have continued to promote LED bulb package deals For instance, prices of Cree’s four 6W LED bulb packed package (which has 450 lumens (lm) output) plunged 177% from US $27 to US$ 2222 The four-packed Cree LED bulb prices have been slashed more than 40% since July 2015
Across the globe, LED bulb prices in Germany declined the most by 28% Majority of product prices dropped with the exception of a small number of products in the market LGE’s 75W LED bulb with 450 lm output prices were halved to US $299 Product prices declined in many regional markets including UK where bulb prices were down 16% In Asia bulb prices dropped 03% in China, slid down 15% in Taiwan, and was down 07% in Korea Japan was the only country where LED bulb prices climbed up 24%
A similar trend was observed for 60W LED bulb prices last month, with larger price fluctuations observed in China In the US market, 60W equiv LED bulb prices slightly dropped 19%, but most product prices remained stable An exception was prices of Osram Sylvania’s two bulb packed 10W LED bulb in the US market, which plunged 20% Moving East into the Chinese market, new low priced products released on the market triggered sharp price falls, for instance Philips 75W LED bulb retail prices reached US $616, and its two packed 10W LED bulb prices was down to US $289
The 60W LED bulb price declines in other market regions were more moderate in September, such as in Germany where prices dropped 17%, UK reported an incremental price decline of 05%, Taiwan and Korea also reported slight price drops of 15% and 07% respectively Following the same trend in 40W LED bulb price market, Japan was the only market region to report a slight 18% price hike for 60W LED bulbs
2015/09/22
The scale of China’s LED package market is projected to expand 16% year on year to 614 billion RMB in 2015, according to the latest Chinese LED Industry Market Report by LEDinside, a division of TrendForce The growth of Chinese LED package market on the whole has slowed With China being the production center of the global LED industry, the weakening of global economy this year has led to a larger slide in the exports of the country’s LED products The year-on-year increase of Chinese LED lighting product exports for this year’s first half is 21%, a steep decline compared with the 80% year-on-year growth for the first half of 2014
LEDinside analyst Allen Yu said that below expected growth of the lighting market demand has caused the current overcapacity for the LED package industry As competition intensifies, prices of LED products will keep falling and operation pressure will mount for small and medium-size industry participants Therefore, industry consolidation will also continue With huge war chests already in place, some major Chinese LED companies have begun acquiring smaller players to strengthen themselves and transform their business models Presently, most Chinese LED companies are competing in the low-end market For Chinese LED product exporters, they will need to acquire international companies with a good number of patents in order establish a firm presence overseas In sum, mergers and acquisitions will be frequent in the Chinese LED industry
This recent and relentless wave of acquisitions is the result of the gradual maturation of the Chinese LED industry, and the process began with LED package companies in 2014 By 2015, the deal-making was officially in full swing with Lumileds, Bridgelux and other international companies becoming targets
Yu pointed out that the competition in the Chinese LED package market has always been fierce, especially in the lighting LED segment Chinese industry participants furthermore have lower margins for their products, reflecting their relatively weak profitability Acquisition is thus one of the various methods that these players can use to help change their business models or boost their competitiveness The following are some common types of deal-making that have taken place so far:
1 Horizontal integration: An LED company can either acquire or merge with another company belonging to the same industry or the same level of supply chain as to rapidly expand, pool resources and complement each other’s technological strengths Notable cases in the Chinese LED industry are Honglitronic’s acquisition of Smalite and Refond’s acquisition of LT Photoelectricity
2 Vertical integration: This type of deal-making involves buying companies up or down the supply chain as to obtain raw materials at cheaper prices or secure sales channels for end products Examples in the Chinese LED industry include Natinstar’s deal with Invenlux Technology (LED chip maker), Honglitrongic’s deal with Lianyou (lead frame supplier) and Mason Technologies’ takeover of Rishang (LED advertising signage specialist)
3 Cross-industry merger/acquisition: Cross-industry deals help companies to spread their risks One prominent example is Honglitronic’s attempt to enter the Internet of Vehicles sector via investments in DINA and Wisdom GPS At the same time, Honglitronic is also branching into the Internet of Finance sector with its investments in Wang Li Finance Corporation
In addition to these types of deal-making, Chinese LED companies that have amassed significant funds are establishing their own investment firms to rationalize their resources with various financial instruments and improve their overall competitiveness For their acquisition targets, the injection of additional fund will relieve them of their cash flow pressure as well as helping them increase their production capacities and scale of their business operations
2015/09/15
The global average price of 40W replacement LED light bulbs fell 15% in August to US$109, while the 60W replacement LED light bulbs fell 23% to US$149, based on the latest report by LEDinside, a division of TrendForce The US was again the regional market that had the biggest decline in LED light bulb prices after July as product vendors including CREE and Philips are using package promotion deals and low prices to drive up sales volume and capture market shares, according to LEDinside analyst Allen Yu Furthermore, Chinese LED and chip manufacturers have been gradually expanding their capacities, pushing down component prices during this period of slowing demand The competition in the LED market on the whole has therefore become more heated
Component prices have kept falling in face of weak market demand
Yu pointed that capacity expansion efforts by many Chinese companies in the upstream have led to a general supply glut, making price decline inevitable HC Semitek, for instance, is raising MOCVD capacity of its Souzhou plant, while Changelight’s blue and green LEDs have entered mass production at its Xiamen operation Nationstar is also steadily increasing its chip capacity Consequently, prices of 02W 2825 LED products fell in August with a decline of 136% on average Prices for 05~1W 3030 products also fell with decline reaching 215% In general, Chinese and foreign first-tier package suppliers – Lumileds, Seoul Semiconductor, OSRAM, Honglitronic and Refond – have all marked down their prices
US led global price decline in the replacement LED light bulb market during August
After witnessing a sharp 141% drop on average in July, the prices of 40W replacement LED light bulbs continued to fall in the US market through August with a smaller average decline of 37% Vendors such as CREE and Philips had reduced prices of their products significantly during their promotional campaigns Among CREE’s products, the price of a pack of six 85W 470lm bulbs fell 20% to US$6226, while a pack of four 6W 450lm bulbs fell over 30% to US$27 Besides these examples, other vendors including Philips and EcoSmart have also cut prices for their products as part of their sales activities Many markets outside the US experienced a gradual price decline in August as well for 40W replacement products Prices in Germany and the UK fell 1~2% on average, while China’s drop was 13% Japan, however, was exception to this downtrend as the prices there went up by 09% instead
The US was also the market where the prices of 60W replacement LED light bulbs had the biggest drop In July, vendors pushed the average price of these products down 95% with their promotional pricing strategies Prices fell further in August with the average monthly decline at 39% Among Philips’ products, a pack of four 11W 830lm bulbs fell 20% to US$4541, and a pack of six 85W 800lm bulbs fell 257% to US$2922 A pack of six 135W 800lm bulbs from CREE also dropped 20% to US$6226 In the UK, the price decline of the 60W replacement LED bulbs grew from 11% in July to 3% in August However, only a minority of these products had significant price decrease An example of such an extreme case is the price of a Verbatim 10W 820lm bulb, which plummeted near 30% to US$1878 in the UK market During the same month, prices of 60W replacement products also fell by 1~3% in other regional markets, including China, Taiwan, Germany and South Korea Japan was again the exception to the price downtrend with its 60W replacement LED bulb market seeing a slight 02% increase
2015/07/22
The scale of the Chinese LED package market grew 19% year on year to US$86 billion in 2014, according to the 2015 Chinese LED Industry Market Report by LEDinside, a division of TrendForce The growth of the Chinese LED package market will slow down in the next few years as LED prices continue to fall Its market scale is forecasted to grow at a five-year CAGR of 9% from 2014 to 2019, when it will reach US$13 billion The general lighting sector will be the main growth sector, whereas LED display and LED backlight sector will post slower growth and even decline in some periods
According to LEDinside's analyst Allen Yu, LED package for lighting application represented 39% of the Chinese LED package market in 2014 The market scale of LED package for lighting application in China also reached US$33 billion that year The lighting market has become the largest LED application in the country “The increasing LED lighting penetration in industrial and commercial lighting applications has helped the rapid growth in lighting LED products,” said Yu LEDinside expects strong growth in the lighting LED market to continue as LED lighting products penetrates the residential lighting application market
Based on LEDinside’s report, the top five domestic LED package companies in the 2014 Chinese general lighting sector were (in order) MLS, Honglitronic, Changfang, NationStar and Refond Furthermore, the 10 companies listed in the ranking below accounted for only 24% of the market share, indicating low market concentration in China’s general lighting sector
Yu added: “The main factors behind this relatively fragmented market situation are low market entry barrier and varied qualities of downstream products However industry consolidation gradually will pick up its pace as technologies matures and the LED general lighting sector enters a period of capital and scale competition The dominant companies will therefore become stronger while smaller companies drop out”
China is currently the main global manufacturing base of LED lighting products, and OEMs/ODMs of brand vendors such as Philips Lighting, Osram Licht AG and IKEA are setting up factories there The development surge in the LED lighting industry is driving the ongoing expansion of the Chinese market demand Therefore, leading LED package manufacturers, such as Japan’s Nichia and Taiwan’s Everlight, are also proactively developing the country’s general lighting application market
Consequently, the Chinese government has given strong support to the domestic LED industry For the LED chip manufacturing in the upstream, the state has provided various subsidies In the downstream market, major Chinese cities are driving the LED replacement demand and launching demonstration projects In sum, state support in the upstream manufacturing and the increasing penetration of LED products in the downstream markets fuel the development of the Chinese LED package industry Led by MLS and Honlitronic, China’s domestic LED package companies are experiencing a rapid rise and will continue to enlarge the scale of their enterprise as well as establishing a strong market position
