Trade War With China Raises Prices of US LED Light Bulbs

Prices of mainstream LED package products in the Chinese market dropped slightly in September, meanwhile LED light bulbs experience a slight price increase, observes TrendForce in a recent price report released its LEDinside market research division.

In the new report, Terri Wang, LEDinside analyst, points out that the scales of the price drop of high- and mid-power products varied in September, with those of the 0.2 W and 0.5 W 2835 LEDs reaching 2% and 3% on average, respectively. Meanwhile, prices of high power ceramic-substrate LEDs declined by 2-3%, as their shares in the markets of architectural, outdoor, and commercial lighting have been gradually taken over by 5050 LEDs.

To further expand their market share, suppliers have been dedicated to increasing their products' added value and upgrading their performance. CREE, for example, has released the XLamp XP-G3 S Line LED suitable for connected lighting, and featuring more reliable cycling and dimming cycling performance, higher sulfur-resistance, and higher light output and luminescent efficiency than the standard XP-G3.

On the automotive market, higher luminosity of high/low beams increases the scope of visibility and alleviates the problem of glare. ADB headlights have been introduced to the medium-tier auto market in 2018, such as the lateral eight-pixel solution which has been employed by Chinese auto brands.

Affected by trade war, branded LED light bulb suppliers in the U.S. have begun to raise prices to pass increased costs from higher tariffs to consumers, as a result of which the average retail prices of 40W and 60W equivalent LED light bulbs rose by 4.3% and 3.6%, respectively, in September.

Another reason for the price hike was the return of higher-priced smart lighting products to the market. In Germany, the ban imposed on halogen light bulbs by the EU starting from September 1st of this year has spurred demands for LED light bulbs. This has caused the average retail prices for Germany’s 40W and 60W equivalent LED light bulbs to advance by 3.8% and 3.1%, respectively.