TrendForce: LED For TV Backlight Applications Price Plunge Eases in 4Q13

Although, mid and large sized LED backlight market was affected by the economic downturn, LED prices for backlight applications overall declined stably at 3-6% in 4Q13, according to LEDinside’s 4Q13 LED price trend report. LED prices for lighting applications also maintained a slow downward slide. The extent of price falls varied among different product specs.

TV backlight market eases, but price quotes remain relatively stable

Annual TV shipment volume was lowered to 203 million sets in 2013 with Year-On-Year (YOY) -1.6%, said LEDinside. This is the first time in recent years that TV shipment volumes have experienced negative growth. However, LED for backlight applications 4Q13 price quotes remained stable, with a range of decline between 3-6%.

Worth noting, LED for TV backlight has begun integrating specs including 7030 LED for edge- type LED TV; 7020 LED for ultra-slim bezel type LED TV; for direct-type LED TV applications the 3528 LED plus 3030 and 3535 LEDs that have recently sold well in China. LEDinside pointed out, while LED packager manufacturers cannot avoid the continual LED price slides, manufacturers production can reach economies of scale and optimize cost control and luminous efficacy as LED specs are simplified and integrated. LED package manufacturers no longer need to launch brand new specs annually.

Weak smartphone Christmas orders cause LEDs for smartphones to fall 6-8% in 4Q13

Mid and large sized backlight market is not the only anemic market. Smartphone shipments have been lower than expected in 3Q13, and 4Q13 Christmas order pull also appeared rather weak. In 4Q13, global smartphone shipment volume reached 7% Quarter-on- Quarter (QOQ) to about 260 million. LED prices for smartphone applications dropped 6-8% in 4Q13. In the field of current smartphone, tablet, and laptop specs, the major package has been 0.6t LED with brightness between 6-8 lumens (lm). This is due to smartphones aggressive replacement of feature phones and continual growth in Chinese white-box smartphone shipment volumes. Tablets and laptops have started to replace 3014 package specs with 0.6t LED. On the other hand, ultrabook brands have also begun introducing low voltage and high brightness 0.6t LED.

LED lighting prices fall at different rates

In the lighting segment, many package manufacturers were able to keep price levels or experienced only slight price declines for mid and high power products in 4Q13. Price fluctuations were considerably limited this quarter for high-power LEDs. The rate of price falls has slowed since top brands including Philips Lumileds, Osram and others still rely on loyal customers to maintain market share and order visibility. , Fewer manufacturers have lowered prices for new products. On the other hand, the market is increasing its emphasis on 1W 3030 spec products. As a result, LED manufacturers have released similar products specs, and price drops have exceeded 10%. As for mid-power 5630 LED product prices, impact from manufacturers release of second generation products has led to slowly declined.