Prices of LED-backlit products for TVs are likely to continue dropping 5-6% in the third quarter of 2012 after suffering a reduction of 1-2% in the previous quarter due to low order visibility, according to LEDinside and industry sources.
In the second quarter, prices of LED-backlit devices for monitors and notebooks, and handsets also edged down 3% and 3-5%, respectively, which was considered to be moderate, said the industry sources.
However, the pressure for LED-backlit vendors to cut prices further has mounted recently, since a number of vendors of smartphones, tablet PCs and LCD TVs have lowered their shipment targets for the third quarter.
Demand for LED chips from the handset sector in 2012 will be 425 million units short of original projections as global smartphone shipments for the year have been revised downward to 606 million units, a reduction of 55 million units from the previous forecast. Affected by decreased demand, prices of handset LED-backlit products are to sink 2-3% on average in the third quarter, said LEDinside.
Additionally, LED-backlit devices in 3014 packages for notebooks are expected to drop 2% in the third quarter, LEDinside added.