The history of white LED development (seven): the impact of low-priced products

2009 is a year of intense competition for LED bulb products. Some manufacturers even cut the price of new products to about half of the original price. It can be said that the low-price competition that plays a positive role now is from this year. Enterprises in different industries have been involved in the LED business, and new and old manufacturers have started a fierce offensive and defensive battle around the new market (the company name, ownership and position are all in the article).

The history of white LED development (a) the exclusive monopoly collapse, ushering in the history of white LED development in the era of competition (2) the battlefield from the court to the market white LED development history (three) with LED products increased, the application scope to expand the history of white LED development (four) Will threaten to eliminate the history of white LED development in the bud (5) LED over fluorescent light white LED development history (six) market ushered in critical period

“The cost is going to exceed our affordability. It is expected that the price will fall at an annual rate of 10-20%, and will fall to half after 2~3 years” (Toshiba Lighting Technology) – July 2009, the old name of the lighting industry Manufacturer Toshiba Lighting Technology has launched a new product with improved performance of bulb-type LED lighting at about half the price. The company just launched LED lighting in the shape of an incandescent lamp in March 2009. But they have to compete with Sharp, which is offering low-cost competitive products.

Sharp shock

In December 2007, Toshiba Lighting Technology introduced the Reflamp Midget LED bulb (1) that supports the E26 socket as the "E-CORE" series. At that time, there was only a product equivalent to a 40W incandescent lamp, but in August 2008, a product equivalent to a 60W incandescent lamp was introduced. However, these products are all equipped with a power supply circuit and ensure a heat dissipation area. A large outer casing is used, and the number of lighting fixtures that can be installed is limited.

*Reflecting bulb: An incandescent bulb that is miniaturized by a reflector lamp that is vapor-deposited on the inner side of the lamp to illuminate the light.

Note 1) E26 is a 26mm diameter lamp socket, which is a general specification for household incandescent lamps. Toshiba Lighting Technology introduced LED lighting that can be installed in the E26 socket in 2006, but the total luminous flux is only about 30 to 40 lm.

In March 2009, more than half a year later, Toshiba Lighting introduced a bulb-type LED illumination equivalent to a 40W incandescent lamp. The suggested retail price is 15,000 yen and the actual sale price is around 8,000 yen. This product, which is comparable in size and brightness to incandescent lamps, strikes the line with existing LED bulbs that have low brightness or limited lighting fixtures.

Sharp has entered the market with low-cost weapons. The company, which just entered the LED lighting market in 2008, released a bulb-type LED lighting that is expected to be priced at around 4,000 yen in June 2009. Only half of the bold pricing of existing products has brought shock to the industry. In order to compete with it, Toshiba Lighting Technology had to reduce the suggested retail price of the 60W product that was subsequently released to around 5,000 yen (the actual sale price was around 4,000 yen). Although performance has improved, prices have fallen by half in just four months.

Other companies have also responded quickly to this trend. Ecorica, which just entered the bulb-type LED market in April 2009, lowered its price from 7,200 yen to 3,780 yen within 3 months after the product launch, and Alice Oyema launched the estimated actual price of 3,980 yen. Product. NEC Lighting, which released LED bulbs in August 2009, also stated that “the market price is comparable to that of competitive products” (the company's public relations department). The largest LED manufacturer Panasonic also plans to launch LED bulbs of the same price in October.

The purpose of Sharp's bold pricing is to establish a bridgehead in the LED lighting market as soon as possible by placing cheap products. “As a late starter, we have set a strategic price. The life of an LED bulb is 40 times that of an incandescent lamp that lasts 1,000 hours, and the price of 40 times is reasonable” (Sharp). However, "this price is already the best we can do now. It is difficult to cut prices again in the next few months" (Sharp), and pricing seems to give priority to ensuring share rather than profit. (Yoshida

Sharp, which is leading the way in lowering prices, compared the results of Toshiba lighting technology that followed Sharp’s price cuts. The data is equivalent to a 60W incandescent lamp.

Edit; Sophy


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