[High-tech LED News] The price war is a headache in the sales of display driver ICs. Enterprises can't avoid it, only respond.
In the field of LED display, the current domestic LED industry lacks core technology, and many display screens are simple to assemble, while the lamp beads and driver chips basically rely on ordering. "It's hard to make sales, and it's very tired. Because there is no independent intellectual property rights, you can't raise the price, and use technology to exchange money. This is the 'cup' of the display products." Some sales IC sales personnel told Gaogong LED reporters. .
Single and double color price confusion, full color IC price reduction trend strengthened
The driver IC is divided into single color and full color, but the price of the whole market is rather chaotic. The 595 single color is simple to make and there are many companies to do. Therefore, the price and negotiation are the best to win. Currently, the price of single color in the market is generally 2 3 hairs or so, and the manufacturing cost is about 2 minutes to 3 minutes, the maximum is no more than 3 points, and the profit is within 10 points.
The constant current full color IC has certain requirements for technology. Because the company's positioning is different, the price volatility is relatively large and requires technical personnel to modulate. The price of full color ICs is not comparable. The price in the market is generally between 1.1 and 1.2 yuan, but the LED boom has driven many companies to enter the market at low prices. "New companies will sell 8-9 hairs, and more than 7 hairs will be sold. The price war is very huge for the old company," said Zhang Faxiang, general manager of Shenzhen Shengyou Electronics Co., Ltd.
In fact, there is no shortage of high-priced companies in the driver IC market, because the previous market stability has already had a clear share advantage. But with the general decline in the price of driver ICs, these companies will also adjust prices appropriately, but the fluctuations will not be large. When large companies also cut prices, a new batch of small businesses will face the pressure of survival.
"At present, there is no reserve price for single-and-two-color competition. It will only win by quantity, and the market of single and double color will fall into the downturn in the future. More and more enterprises will choose to give up this market if the quantity cannot be satisfied." Frankly.
Although the products used by various manufacturers are different, if the "essential nature through the surface", the quality of the driver IC is not large. For example, 595 on the market is cheaper than constant current, but constant flow stone is the basic condition for full color screen. The price war in the market is mainly due to the lack of a real core and no patents.
The price of the driver IC will last for about a year.
Compared with other electronic industries, the development history of LED displays is not very long, but at present, many companies in this field, the fierce market competition and disorder, will always bring price pain to the industry. Some powerful enterprises have reduced their costs and occupied the market through vertical integration through supporting production.
"But the cost is reduced and the price of the product is ultimately lowered." Zhang Faxiang said, "I will only lower the price in advance to occupy the market first. Then when everyone cuts the price, I will focus on service, timely delivery, and maintain customer cooperation." Persistence."
The smoke of the price war has caused the industry to talk about the "price" change. The pain that drives the IC will last for 6-12 months. After the painful period, the subsequent service-oriented enterprises will gradually emerge, while the middle Some small customers, or small design companies, face the danger of being eliminated.
The increase and acceleration of social information traffic has accelerated the changes of the industry to some extent, and the integration period of the pain period and the future pattern will come early. At present, it is the pain period for driving ICs and their components. Of course, there will be some balance in price reduction. It takes two years for the price balance of the driver IC to arrive, and it may come early.
What is the future IC- driven market structure?
Similar to the color TV industry, the final pattern of the LCD screen is the same. In the next three to five years, the domestic leading enterprises that drive ICs will form a leading position.
"Firstly, the ICs accumulating in Taiwan occupy a dominant position in the market. With the general price cuts, the accumulation will also lower the price. As long as it is slightly lowered, other customers will receive it." Zhang said that the current accumulated driver ICs are in Taiwan. And LED display screens of some large enterprises at home and abroad.
At present, there are many enterprises in China that do ODM for Taiwan and its foreign companies. In the face of market pressure, there will be pressure to cut prices. ODM does not create its own brand and is relatively passive. Large domestic enterprises such as TCL and Konka are also considering building their own design companies, giving priority to using their own driver ICs. In terms of price strategy, large companies will have their own characteristics according to their own characteristics. product.
LEDs are highly optimistic for the world because of their high energy-saving performance. However, in the future LED driver IC market, "the first full-color standard business will become the 595 model, which will reduce prices and keep profits within 15% of profit. The low-profit model drives specific customers to switch to TWN control systems."
To this end, Zhao Yichen, general manager of Suzhou Riyuecheng, said that enterprises must not only compete on cost, but also compete on added value. On the basis of a small increase in product cost, improving the quality and performance of the display is a development direction worth considering in the current enterprise.
In the field of LED display, the current domestic LED industry lacks core technology, and many display screens are simple to assemble, while the lamp beads and driver chips basically rely on ordering. "It's hard to make sales, and it's very tired. Because there is no independent intellectual property rights, you can't raise the price, and use technology to exchange money. This is the 'cup' of the display products." Some sales IC sales personnel told Gaogong LED reporters. .
Single and double color price confusion, full color IC price reduction trend strengthened
The driver IC is divided into single color and full color, but the price of the whole market is rather chaotic. The 595 single color is simple to make and there are many companies to do. Therefore, the price and negotiation are the best to win. Currently, the price of single color in the market is generally 2 3 hairs or so, and the manufacturing cost is about 2 minutes to 3 minutes, the maximum is no more than 3 points, and the profit is within 10 points.
The constant current full color IC has certain requirements for technology. Because the company's positioning is different, the price volatility is relatively large and requires technical personnel to modulate. The price of full color ICs is not comparable. The price in the market is generally between 1.1 and 1.2 yuan, but the LED boom has driven many companies to enter the market at low prices. "New companies will sell 8-9 hairs, and more than 7 hairs will be sold. The price war is very huge for the old company," said Zhang Faxiang, general manager of Shenzhen Shengyou Electronics Co., Ltd.
In fact, there is no shortage of high-priced companies in the driver IC market, because the previous market stability has already had a clear share advantage. But with the general decline in the price of driver ICs, these companies will also adjust prices appropriately, but the fluctuations will not be large. When large companies also cut prices, a new batch of small businesses will face the pressure of survival.
"At present, there is no reserve price for single-and-two-color competition. It will only win by quantity, and the market of single and double color will fall into the downturn in the future. More and more enterprises will choose to give up this market if the quantity cannot be satisfied." Frankly.
Although the products used by various manufacturers are different, if the "essential nature through the surface", the quality of the driver IC is not large. For example, 595 on the market is cheaper than constant current, but constant flow stone is the basic condition for full color screen. The price war in the market is mainly due to the lack of a real core and no patents.
The price of the driver IC will last for about a year.
Compared with other electronic industries, the development history of LED displays is not very long, but at present, many companies in this field, the fierce market competition and disorder, will always bring price pain to the industry. Some powerful enterprises have reduced their costs and occupied the market through vertical integration through supporting production.
"But the cost is reduced and the price of the product is ultimately lowered." Zhang Faxiang said, "I will only lower the price in advance to occupy the market first. Then when everyone cuts the price, I will focus on service, timely delivery, and maintain customer cooperation." Persistence."
The smoke of the price war has caused the industry to talk about the "price" change. The pain that drives the IC will last for 6-12 months. After the painful period, the subsequent service-oriented enterprises will gradually emerge, while the middle Some small customers, or small design companies, face the danger of being eliminated.
The increase and acceleration of social information traffic has accelerated the changes of the industry to some extent, and the integration period of the pain period and the future pattern will come early. At present, it is the pain period for driving ICs and their components. Of course, there will be some balance in price reduction. It takes two years for the price balance of the driver IC to arrive, and it may come early.
What is the future IC- driven market structure?
Similar to the color TV industry, the final pattern of the LCD screen is the same. In the next three to five years, the domestic leading enterprises that drive ICs will form a leading position.
"Firstly, the ICs accumulating in Taiwan occupy a dominant position in the market. With the general price cuts, the accumulation will also lower the price. As long as it is slightly lowered, other customers will receive it." Zhang said that the current accumulated driver ICs are in Taiwan. And LED display screens of some large enterprises at home and abroad.
At present, there are many enterprises in China that do ODM for Taiwan and its foreign companies. In the face of market pressure, there will be pressure to cut prices. ODM does not create its own brand and is relatively passive. Large domestic enterprises such as TCL and Konka are also considering building their own design companies, giving priority to using their own driver ICs. In terms of price strategy, large companies will have their own characteristics according to their own characteristics. product.
LEDs are highly optimistic for the world because of their high energy-saving performance. However, in the future LED driver IC market, "the first full-color standard business will become the 595 model, which will reduce prices and keep profits within 15% of profit. The low-profit model drives specific customers to switch to TWN control systems."
To this end, Zhao Yichen, general manager of Suzhou Riyuecheng, said that enterprises must not only compete on cost, but also compete on added value. On the basis of a small increase in product cost, improving the quality and performance of the display is a development direction worth considering in the current enterprise.
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