The lighting market is weak, and the European filament lamp market is highly competitive.
From the first quarter to the second quarter of this year, the price of LED packaging products continued to decrease. In June, the prices of mainstream packaging products in the Chinese market remained stable, but the demand for lighting market remained unchanged. Due to the weak lighting and backlight market, most of the manufacturers are transforming into niche-type and high-tech threshold markets. The car and special lighting market is the new blue ocean.
According to LEDinside statistics, in June, the average retail price of LED bulbs replacing 40W incandescent lamps fell slightly by 0.1% to US$6.3; the average retail price of LED bulbs replacing 60W incandescent lamps dropped slightly by 0.6% to US$7.5.
The market for filament lamps in Europe is highly competitive. In Germany, the average price of LED bulbs replacing 40W and 60W incandescent lamps fell by 0.5% and 3.4% respectively. Brand manufacturers including OSRAM, Philips, Sylvania, Müller, etc., in order to increase market share, low-cost sales of filament lamps, resulting in product prices The decline is larger.
The Sino-US trade war is escalating again, “wrong” LED industry?
On July 10th, the Trump administration promoted the plan to impose tariffs on China’s $200 billion in goods and released a list of target products.
The first round of taxation projects for industrial intermediates has limited impact. In 2017, China’s exports to the United States were about 175 million US dollars. Therefore, the impact on China’s LED industry is quite limited. The main impact is that CREE has lighting factories in the United States. American manufacturer of LEDs from China.
The second round of 200 billion LED products covered a wide range of products, including LED and lighting categories of more than 10 items, and the trade volume is also large, of which the main lighting products in 2017 China exports to the United States The amount is as high as more than 5 billion US dollars.
Because the United States has always been an important export market for China’s LED downstream including lighting and other industries, if the 200 billion US dollar tariff project is approved, China’s LED-related industries will inevitably suffer.
However, due to the obvious advantages of China’s lighting industry, it has formed a global industrial cluster. Compared with other regions in the world, it has obvious comprehensive cost advantages. Therefore, more than 85% of global LED lighting products are assembled and produced in China.
Even with a tariff of more than 10%, it is difficult for US consumers to obtain alternative products from other regions in the short term, and 10% of the additional tariff costs will be shared between US consumers and Chinese lighting manufacturers.