Taiwan-based blank optical disc maker Ritek plans to introduce 7W LED light bulbs. There will also be a promotional campaign where consumers can buy one and get one free for NT$299. Market observers noted that retail prices of 7-8W LED light bulbs in Taiwan will be slashed significantly in 2013.
With more products complying with industry standards and competition heightening, the market is likely to see vendors start dumping LED light bulbs in the second half of 2013.
Ritek began promoting own-brand LED products in 2012. The firm procures upstream chips and packaging components from suppliers. Although in 2012, Ritek only saw LED lighting revenues reach NT$50 million in the Taiwan market, the firm has been cooperating with various distribution channels, and revenues in the first half of 2013 have already reached NT$50 million.
According to Digitimes Research, the LED light bulb penetration rate in Taiwan is likely to reach close to 20% in 2013. However, Taiwan consumers are highly sensitive to prices, and hence distributors usually use promotional prices to stimulate demand.
Industry sources pointed out that summer electricity price hikes has begun in June and will last for four months in Taiwan. This means the electricity prices per kilowatt hour in summer are likely to increase by 12-25%. Industry sources believe this will stimulate sales of LED light bulbs. In addition, if another price hike occurs in October - which the Taiwan government plans to do - sales of LED light bulbs are likely to peak at the end of 2013, said sources.
