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LED bulb prices fell further in US as year-end sales swept across domestic markets

Jan 13, 2016: The latest report by LEDinside, a division of TrendForce, revealed that the global average price of 40W-equivalent (equiv.) LED light bulbs arrived at US$10.6 in December 2015, down 1.6% from November. The global average price of 60W-equiv. LED bulbs for the same month also dropped 0.7% to US$14.5.

LED bulb prices fell further in US

In the US and Europe, prices of some products were still in decline in December on account of year-end sales, according to LEDinside analyst Allen Yu. Promotional activities were not as significant in Asia through December, so prices remained stable in most of the countries in this region. The only exception during the same month was China, where lighting vendors tried to boost their sales by maintaining low prices for some products after the Singles? Day event in November.

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The market recovery in December and the stock-up demand at the end of the year moderated the general price decline of LED package products in China. Prices of standard LED packages were steady on the whole, while prices of mid- and high-power LED packages dropped slightly.

A year-end recovery moderated the price decline of LED packages

Prices of mainstream LED packages were in a downtrend throughout 2015, with year-on-year declines ranging from 20% to 40%. Products of the 2835 package type in particular suffered the steepest drop for the entire year. Prices of 0.2W and 0.5W 2835 LED products respectively fell by 31% and 40% year on year. Prices of 5630 and 3030 LED products on the other hand fell by around 20% year on year.

While the December recovery has slowed down the price slide in the LED package market, Yu noted that Chinese LED companies are still having excess capacity. This problem is unlikely to go away in the short term even with demand starting to return in the fourth quarter of 2015. LEDinside therefore expects price decline to persist in the Chinese LED package market going into 2016.

Year-end promotions resulted in reduced prices for LED light bulbs worldwide

The U.K. was the regional market that had the largest decline in prices of 40W-equiv. LED light bulbs for December, with an average monthly drop of 6.8%. The same products also suffered a 3.6% price decline in the U.S., whereas prices in Germany were stable due to lack of significant year-end sales activities. Prices of 40W-equiv. LED light bulbs bounced back in Japan after two consecutive months of decline. China by contrast still witnessed falling prices for 40W replacement products in December.

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China was the regional market that had the largest decline in prices of 60W-equiv. LED light bulbs for December, with an average monthly drop of 4.9%. To drive up sales, vendors in China continued with their promotional activities after the Singles? Day event in November. Prices of 60W replacement products in other regional markets were relatively stable in December.

Yu pointed out that for 2015, the global average price of 40W-equiv. LED light bulbs fell 14% annually, while the year-on-year price decline for 60W-equiv. LED light bulbs was 16%. China and the U.S. were the markets where the downtrend was very noticeable. Overall, LED lighting products did not encounter price decline as sharp as LED packages, and lighting vendors have managed to keep prices high for some products that hit the market early last year.

Source: LEDinside

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