Taiwan-based LED firms are optimistic about the commercialization of LED light bulbs in the US market, as Cree, an US-based LED firm, recently introduced a warm white 40W retrofit LED light bulb with a retail price of US$9.97/unit. In addition, Cree also introduced a warm white 60W LED retrofit LED light bulb and a 60W daylight LED light bulb with the retail price of US$12.97/unit and US$13.97/unit respectively.
According to David Su, chairman of Taiwan-based LED firm Lextar, the low price strategy adopted by Cree is likely to stimulate retail sales, which will be beneficial to Taiwan-based firms because as product prices fall and demand picks up, shipments from Taiwan-based makers to US-based customers are expected to increase. In the past, said Su, firms that hoped to enter the US market usually had to wait for six months to one year for product verification, and therefore, firms have been reluctant about the US market.
Epistar believes the low price strategy of Cree will put pressure on other brands. Epsitar stated that the prices of omni-directional 60W LED light bulbs may drop below US$10/unit in 2013.
The penetration rate of LED lighting in the global market continues to rise and is likely to reach 18% in 2013 while prices are expected to fall by 20-25%. In addition, the price-performance ratio of LED components is expected to increase significantly and reach 1,000lm/US$1. The commercialization of LED lighting is expected to expand.
