The price competition for bulb-type LED lighting is becoming more and more intense. It is Sharp that ignites the fuse. In June 2009, the new product released by Sharp put the price of the product at about half of the market price. The price of the 40W incandescent lamp is about 3,900 yen, and the price of the 60W incandescent lamp is about 4,000 yen. . "The life of an incandescent lamp is 1000 hours per 100 yen, so the price of an LED bulb with a life expectancy of 40,000 hours is 4,000 yen" (Sharp). To make the price per unit time the same as incandescent lamps, Sharp has cut the cost of LEDs, power supplies, and materials. In line with the policy of “choosing the right materials, both inside and outside the companyâ€, Sharp even has the LED kits for the core components to be externally purchased rather than self-produced.
The improved performance of the LED kit also contributed to cost reduction. The miniaturization and heat dissipation design is easier to implement than before, and it is easier to package in a small space such as a bulb type. However, after the price has been halved, the cost has not been reduced enough to achieve a substantial profit. So Sharp's move is to introduce strategic prices to capture share in the new market for home LED lighting. As expected, new products are popular, and even to delay the time to market in order to ensure the quantity supplied.
In order to fight against Sharp, competitors have also taken action. In July 2009, Toshiba Lighting Technology added a total of four LED bulbs with a power consumption of 6.9W and 4.1W. The overall efficiency of the 昼 white product is 82 lm / W, "the highest in the industry" (the company), 6.9W product pricing 5460 yen, 4.1W product pricing 5250 yen, about half of the existing products. The actual selling price of the market is below 4,000 yen. In April of the same year, Ecorica, which had just entered the bulb-type LED market, lowered its product price from 7,200 yen to 3,780 yen within three months after its launch. Alice Oyama also entered the market at the price of 3,980 yen in mid-June of the same year.
Despite the dilemma of “very serious cost accounting†(Toshiba Lighting Technology), companies are still expanding their low-price competition because the predecessor’s view of the king is deeply rooted in the market. It is expected that LED lighting, which is characterized by long life, will not have much replacement demand after its popularity, so excessive competition in the LED lighting market has begun.
(Edit: Sandwich)
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