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LED Display Upstream Downstream wait and see prices
  • 2016-10-26 16:11:42
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LED display industry "price war" dragged played a number of years, has experienced ups and downs, the early "astronomical" LED display allows consumers to catch up, in order to meet the broad needs of the market, LED display enterprises to continuously improve the production technology and lower production costs, prices gradually fell induced normal levels, to the price "of civilians." However, the two sides to mutually beneficial price momentum did not last long, with the LED industry, the upgrading of production technology and popularity, strong production capacity and lead to a serious backlog of inventory industry, in this case, in order to stimulate market demand for production capacity , price became the main strategy LED display enterprises, and manufacturers have cut prices will naturally lead to the butterfly effect, especially in some large companies lower the price, can only bite the bullet against SMEs, therefore, LED display industry price war has become protracted war, and even become a "lose money" trading, many small and medium enterprises within the industry thus fell into decline and even extinction.


LED display industry "price war" dragged played a number of years, has experienced ups and downs, the early "astronomical" LED display allows consumers to catch up, in order to meet the broad needs of the market, LED display enterprises to continuously improve the production technology and lower production costs, prices gradually fell induced normal levels, to the price "of civilians." However, the two sides to mutually beneficial price momentum did not last long, with the LED industry, the upgrading of production technology and popularity, strong production capacity and lead to a serious backlog of inventory industry, in this case, in order to stimulate market demand for production capacity , price became the main strategy LED display enterprises, and manufacturers have cut prices will naturally lead to the butterfly effect, especially in some large companies lower the price, can only bite the bullet against SMEs, therefore, LED display industry price war has become protracted war, and even become a "lose money" trading, many small and medium enterprises within the industry thus fell into decline and even extinction.


With LED manufacturing raw materials, chips, packaging manufacturers have responded to the call price, the downstream portion of the LED display enterprises have also announced a notice of price increases. In view of the upstream chip companies and packaging companies and other prices go up a total of about 5-10%.


About the "price boom" Many people in the industry in its analysis of incentives that the market demand is a direct factor in stimulating trade prices, the market for small pitch LED display growing demand, the cost of work fine pitch LED display and investment is also increasing, which fundamentally determines the price of inevitability.


Furthermore, since the industry after inferiority price competition led LED material prices bottomed, comprising a substrate compared to June increased by 30% compared with the beginning of gold to enhance more than 27%, and 10% of MO source prices, rising labor costs, which kinds of prices bottoming out is a major factor in price increases. In addition, competition in the industry a good direction to change is the inevitable result of the market's healthy development, crystal power to raise prices in the first half cut the space industry to effect capacity gradually, in response to industry giants have lower prices contributed to boost competition in the industry regard to quality to compete with the state of affairs, according to analysts, there is room for price increases follow industry continued to improve the possibility of industry bigwigs also LED industry "price boom" said he was looking forward to have effect.


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