Prices of LED light bulbs replacement for 40W incandescent light bulbs hit a low of $18 ($52/Klm)

TAIWAN: Luminous flux improvement accelerates the popularization of the LED lighting market. Targeting at the LED light bulbs (450-485lm) to replace the 40W incandescent light bulbs, LEDinside conducted a comprehensive price survey. The survey showed that the price of LED light bulbs has plummeted by 55 percent from March, 2010 to June, 2011; the average retail price dropped to $24 ($52/Klm). The continuous downtrend of LED light bulb prices is expected to increase the demand for LED applications.

Based on LEDinside’s survey, the LED light bulb price has considerably dropped. For example, the retail prices of LED light bulbs in Japan were about $40 in 2010, and now set a record low of $18, with a huge drop of 35 percent in 2Q10. Although the downtrend became less drastic in 3Q10 and 4Q10, the prices still suffered a double-digit setback, respectively. On the other hand, the prices merely dropped by 3 percent in 1Q11 and then remained comparatively stable in 2Q11 due to effects caused by the Japan earthquake.

According to LEDinside, the downtrend caused the LED light bulb price to drop from USD83 /Klm in 2010 to USD 52 / Klm at this stage. However, the initial cost of the LED light bulbs is still much higher than that of general light bulbs, so it is still too soon to say whether LED light can fully replace the latter.

Decreasing price downtrend can help stimulate LED light bulb market growth
Moreover, sales of LED light bulb surpassed that of incandescent light bulbs in June in Japan, and South Korean light bulb makers’ pricing strategy and the business strategies of Philips, Osram, GE and other major manufacturers in the global light bulb market have become more and more clear. In light of success in the Japanese market, the prospects of LED light bulb will most likely find their way into the North America and the European markets.