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Osram changes LED production strategy to attract greater market share

Osram changes LED production strategy to attract greater market share

By BizLED Bureau

Feb 23, 2016: Osram Sylvania’s has trimmed the life-expectancy of their LED bulbs to 11,000 hours from 25,000 hours.  The new strategy plan is to attract new customers and greater market share. The newly produced bulbs are made from elements to provide the bulbs a more limited lifespan of around 11,000 hours.

The current move from Osram has enabled a price drop. The price of a 60 watt-equivalent A19 LED bulb has been reduced to US$ 3, which is lower than LED bulbs from other competitors, a source at Osram stated.

Power efficient LEDs produce more lumens per watt , which means lesser number of bulbs will be needed to light the home. Hence, you see a comparable type of savings that generate same amount of light as a 75 watt incandescent bulb.

READ ALSO: New LED lighting efficiency rules proposed by DoE

LEDs have played a major role in reprising the lighting concept. According to McKinsey & Co., the worldwide revenue for LEDs in general lighting is estimated to grow from approximately US$ 6.5 billion in 2011 to over US$ 75 billion by 2020. The market share for LEDs is expected to grow from approximately 45% percent in 2016 to 70% by 2020.

Price drop in LED bulbs have played a crucial role in its widespread implementation. A 60-watt equivalent bulb was for US$ 100 in 2008, which is now available for as low as US$ 10.

READ ALSO: Canadian researchers developing multi-functional OLED smartphone

Influx of Asian manufacturers in the market has challenged long-established names like Philips and Osram. LED bulbs are based around semiconductors, just like cell phones and TVs and this factor makes the market all more competitive. Traditional electric giants GE is concentrating exclusively on LEDs and phasing out CFLs as the market is diminishing for the latter.

Osram has worked diligently to ensure that their 60-watt flagship A19 bulb should remain as the standard incandescent bulb. Due to bigger size, consumers have often complained for not being able to replace the existing shades. With advancements and changes in progress, the future will benefit the end-user in all scenarios.

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