October 2012 Price Trend for LED Bulbs- Global Manufacturers to begin Targeting Affordable Pricing Strategies
According to the latest price survey from LEDinside, a research division of TrendForce, global retail prices for new LED bulbs are continuing to exhibit small fluctuations throughout October. For the 40W equivalent LED bulbs, average prices climbed by 2.3% and arrived at $19.2 USD. With regards to the 60W equivalent LED bulbs--of which there comparatively more varieties within the US-- ASP dropped to $32 USD, a 1.6% decrease. Making a strong impression within the Asian markets at the moment is Philip's affordably priced, 600 lumens 9W LED bulb. In 2013, it is predicted that the company will begin releasing more affordable LED products as a means to increase business momentum within the LED industry.
New 40W Equivalent Bulb Products Spark Pricing Uptrend within the US
As stated by LEDinside, the global retail average prices of 40W equivalent LED bulbs ended up being $19.2 USD in October, a 2.3% increase from the previous month. The price uptrend has been particularly apparent in US regions, where prices have risen by as much as 14%. While price fluctuation associated with existing LED products tend to be relatively small, the releases of new high-end products have been able to spark an overall surge in ASP. A notable trend leading to this situation is the launch of high pricing products from first tiered manufacturers, which proved the benefits of combining company brand with technological expertise. For the Korean and German regions, prices in October increased by 1.7% and 1.2%, respectively, due to the falling exchange rates. As of now, no new 40W equivalent LED products appear to have been released within the two countries. On the other hand, the 40W equivalent LED bulb prices in Japan dropped by 1.4%, whereas in the UK, the price drop was approximately 2%. Rising exchange rate values are among the causes leading to the general price downtrend for the two countries' existing LED products.
60W Equivalent LED Bulb Prices Experience Slight Fluctuations in Various Regions
For October, the global ASP for 60W equivalent bulbs dropped by approximately 1.6%, arriving at $32 USD. While new varieties of these bulbs have been released in the US, the average prices within the country have nonetheless experienced a 0.2% decrease. A reason for this is the sliding prices of the existing LED products, which is contributing to the overall dip in ASP despite the high prices associated with new LED products. In Japan, prices rose by 1.3% in October, reaching to the $34 USD mark. The price fluctuations within the country have been small, with no new varieties of 60W equivalent LED bulbs being released. In Korea, while the existing category, as well as prices, of 60W equivalent LED products remains unchanged, the declining exchange rate has led to an overall 1.6% price surge. In the UK and Germany, prices have dipped by 5.4% and 4.1%, respectively. For the two countries, prices for existing LED products are going on a general and steady decline, with no new releases being spotted.
LEDinside Perspective- Philips Testing the Waters By Launching Affordable Pricing Strategy
The LED market for October, as observed by LEDinside, saw the release of new LED items that on average had better dimming functions and power efficiency. Although prices of these products tend to be high, consumers are generally responding positively to the new functions, with praise being directed towards such areas as the responsive dimming function, the effective brightness, and the absence of the fading effect. Users are also reportedly pleased with the overall balanced quality of the lighting, which is similar to that of incandescent lamp and is free of the "blue hue" issues of the traditional LED lamps. It can be argued, from these positive reviews, that consumer satisfaction and acceptance generally improve as LED products undergo new enhancements.
For 2013, LEDinside believes wireless LED bulb products will begin hitting the market on a massive scale. Along with the other new releases, this product is expected to contribute to a possible pricing uptrend for LED bulb prices. However, with the market increasingly expanding and with price-performance ratio going on the rise, there is a chance that the future LED bulb trend will either go steady or continuing slightly decreasing.
Regarding the Asian market, LEDinside has noticed that other than the low price products generally spotted in the Korean market, Philips has begun to release an affordable 600 lumens, 9W LED bulb which is priced at approximately $12 to $13 USD and is intended to replace the traditional 50W light bulb. With the company apparently attempting to go with the affordable pricing strategy within the emerging markets, it is predicted that Philips will potentially experience a series of future affordable pricing strategies. Consumers are likely to begin receiving a stronger impression of the company, now that it releases LED products in both the high-end, high priced range and the low end category.
If Philips succeeds in promoting its affordably priced 800lm LED products during 2013, there is a chance for the 60W equivalent LED bulbs to gain stronger acceptance within the LED market.
