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Philips urges ODMs/OEMs to lower ex-factory prices of LED bulbs

Philips urges ODMs/OEMs to lower ex-factory prices of LED bulbs

October 21, 2015: Philips has asked Taiwan- and China-based ODMs/OEMs to lower ex-factory prices for an LED light bulb to US$0.80 in 2016, according to Taiwan-based supply chain makers.

Currently, ex-factory prices for inexpensive simply-designed LED light bulbs launched in the second half of 2015 have dropped to a minimum level of US$1-1.20, the sources said. China-based ODMs/OEMs, even with competitive advantages in production costs, will struggle to lower quotes to below US$1 currently, the sources indicated.

It is difficult to reduce prices for an LED light bulb to US$0.80 merely through decreasing LED chip and packaging costs, the sources noted. To reach such a low price, it will be necessary to minimize total production costs through offering new designs, the sources explained.

Taiwan-based LED packaging service provider Everlight Electronics indicated that it has developed a solution using thee China-made LED chips to make an LED light bulb and the corresponding ex-factory price can be lowered to US$0.90.

Source: Digitimes

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