According to foreign media reports, Philips Lighting recently completed the procurement negotiations for LED device suppliers in the first half of 2017. It is estimated that the purchase price of components will decrease by 5-7% compared with the first half of this year.
At present, as the price of LED devices has approached the cost red line, the price decline has narrowed. At the same time, due to the growing market demand for downstream applications, LED package manufacturers are no longer accepting low purchase quotations from downstream customers.
Considering the limited decline in device prices, Philips Lighting is expected to reduce device purchases in the first half of next year, down 10% from the first half of this year.
In addition, Philips Lighting recently won the bid for 50 million LED bulb purchases from the Indian government. The price of a single 9w LED bulb is only $0.57.
Relevant people expect that in the future, as the decline in packaging prices narrows and the price competition in the downstream market becomes more intense, LED lighting manufacturers will face greater challenges.
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