History & Milestones

As opposed to 4Q11, it was the price of 40W equivalent LED bulb that experienced more drastic price drop in 1Q12. Aside from South Korea, the 40W equivalent LED bulb’s prices in North America and the United Kingdom have been sliding toward US$10.

The lowest prices in most areas are expected to fall below US$10 in 2H12.

At present, the major brand vendors, in particular, South Korean vendors, are actively participating in the price war and lowering prices for their products, launching 40W and 60W replacement products with significantly lower prices. The world-wide ASP of LED light bulbs has been in a strong downtrend; it is only a matter of time that the LED light bulbs become affordable to most consumers. South Korean makers’ LED chip prices are lower than those of other manufacturers, and the same goes for their LED light bulb prices, which suggests that the South Korean government and the makers are taking a highly aggressive strategy to secure their leading position in the LED industry.

Prices aside, technologies and specifications such as brightness and color temperature are equally crucial. It is expected that the manufacturers will focus more on improving their products’ quality and specifications, and not just on releasing new products with lower prices.