What Are the Benefits of the Price Reduction of LED Chips for LED Display Manufacturer?
Publish Time : Apr 01 2019
With the coming of 2018, the rising price trend of LED chips is coming to an end. According to relevant sources, many chip manufacturers have reduced their individual products by as much as 25%. There are two main reasons for the price reduction. Over the past few years, the external environment of chip shortage has changed. Secondly, many LED display manufacturers have been fighting each other's prices for many years. Just this year, several major manufacturers of LED chips are all Eight Immortals crossing the sea. The growth of supply can fundamentally change the relationship between supply and demand.
Can LED display manufacturers who have experienced the upstream and midstream price increases and related accessories be happy? When the prices of raw materials and related accessories rise, display manufacturers should maintain the original price as much as possible. The upstream chip price reduction is good news for the whole industry, and the cost of LED display will also fall accordingly, which is really a hemostasis for the struggle. However, due to the strategic demand of some enterprises to occupy the market, it is very possible to lower the price of LED display screen.
In order to occupy a larger share of the market, it is common to reduce the price and interest. Cost has always been plagued by the development of manufacturers. Industry insiders know that the price difference between the same size LED display and LCD display is several to tens of times. Although many advantages of LED display in the field of large display are pressured on LCD, the high cost will also put many customers at a standstill. The commercial market is the market with higher net profit at present, so it is also the most competitive market. Nowadays, upstream chips are giving display manufacturers room to cut prices. In addition, for the purpose of suppressing opponents to maximize profits, it is common to use the rather sharp competitive means of differential price reduction. With the maturity and popularization of technology, small spacing technology has gradually become popular technology, and small spacing market has gradually become a fierce competitive Red Sea. The ensuing price war is bound to be fierce.
The difference between amateur and professional manufacturers is that the former takes one step at a time while the latter takes several steps at a time. In the industry of LED display which emphasizes both service and quality, there are few enterprises that can take a few steps step by step, but few enterprises have real capital to take three steps step by step. What will these powerful companies with the most advanced technology do when the chip price is reduced? The upstream chip price reduction will accelerate the pattern change of the LED display
industry, so that the enterprises with deep strength have better growth space and more clear polarization. Price war has always been the sword of LED display industry, which is the most powerful weapon. With the maturity of the industry, powerful enterprises will have bargaining power in a certain field, and will also make enterprises to a higher peak, while the situation of ordinary enterprises is more difficult. For many reasons, the upstream chip price reduction is good news. It can lighten the burden of enterprises very well.