Does LED corn light has the opportunity to reduce prices?

After experienced expansion type expansion, excess capacity, as well as big manufacturer reduce production, LED corn light products rise in price since the second half of 2016. And with the improvement of entry threshold, to further improve industry concentration, and the downstream products of LED lighting, High prices have left many LED manufacturer struggling. However, recent analysis suggests that LED corn lights are being reduced price as production capacity increases, businesses expand and domestic equipment is used.

In addition to the booming domestic market, the industry giants that have been born in the LED corn light industry shuffle are also developing foreign markets.According to the report, the global market share of LED corn lighting plants in China increased to 45 percent last year, and the proportion of major factories has also increased.

Domestic LED industry to match price advantage with other countries and regions, especially in the low-end market share is very high, so that foreign manufacturers also began to contract way purchase products from domestic LED corn lamp manufacturer.That, in turn, has further boosted the demand for domestic LED corn light.
LED corn light

In such an environment, expanded production became the consensus of LED corn lamps, and the manufacturers expanded to meet the market demand and increase sales.Currently, chip factories are buying new equipment, and some have announced plans to expand production.There are even some manufacturers that say capacity has doubled since the start of the year and will continue to expand.The research firm expects the production of LED corn lights to be released gradually in the fourth quarter of this year, when there will be some downward pressure on the price of LED corn lights.

In addition, previously, MOCVD equipment is in the hands of European and American enterprises, and domestic manufacturers have higher equipment costs.The development and production of domestic MOCVD equipment is also under way, and after the test of domestic chip manufacturers, it will gradually replace some foreign equipment and put into production operation.The price of MOCVD equipment, which is produced in China, is relatively low and is also conducive to the price reduction of LED corn lamps.

Although the production LED corn light still can't meet the demand of downstream application layer surface, prices in the short term or difficult to drop, but with the release of production capacity, will be conducive to ease the tight supply and demand.Moreover, the scale effect of the expansion will also reduce the cost of the product, and the price of LED corn lights will decrease with the driving of various factors such as the cost of equipment.

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