Based on the survey of LEDinside, the LED research division under TrendForce, LEDinside indicated that the speed of LED market demand recovery in the first quarter of 2011 is lower than expected. Affected by inventory adjustment of the large-sized panel display market and the LED lighting market, LED manufacturers are facing the pressure of price reduction.

According to the latest price survey by LEDinside, an LED research division of TrendForce, in 2010 Q4, demand from LED applications still has not recovered, including continued inventory adjustment of large-size panels and lower-than-expected demand from general lighting. As a result, pressure of LED price decline extends from 2010 Q3. Among them, price of LED for large-size panel applications fell by 5% -9%, with most substantial decline in TV backlight applications; high power LED lighting applications declined by more than 12%. Due to relatively stable demand from mobile phone applications, LED prices in this segment are fairly stable with a mere 3% seasonally adjusted decrease.

LEDinside, the LED industry research institute has released its latest LED price trend report, showing that the LED price plummeted sharply in Q3 2010 due to the sudden decline in the LED application demand including inventory adjustment resulting from less-than-expected large-size panel demand and sluggish lighting application demand.  The LED price for large-size panel application fell around 11-16% while the high power LED for lighting application slumped more than 17%. As for the mobile application, LED price kept roughly flat with about 3-4% seasonal erosion thanks to the relatively stable demand.

LEDinside, a research division of Trendforce Corp., has made the latest price trend report, pointing out that the LED price for backlight application remained stable in Q2 due to a robust demand and shortage of upstream materials. It predicts that there should be limited pressure to lower the price in Q3 as the supply of LED materials gradually stabilizes and large-size backlight application demand continues.

LED Price Trend in 1Q10 According to LEDinside's price trend report, LED supply and demand are fairly stable in the first quarter of 2010. There is a seasonal proce erosion of 2-5% across backlight applications. For LED lighting application, the QoQ price erosion of high power LED appeared to be more servere, over 10%, due to invantory adjustment.

According to LEDinside’s latest price trend report, the growing shipment in LED backlight and lighting application led to a shortage in the chip supply. As a result, the white LED prices remained flat in 4Q09: Prices for backlighting dropped slightly by 1-3%, while prices of high power LEDs remained stable.

In 3Q09, the increasing demand in LED backlight for NB and TV led to a shortage in the supply of LED chips, and stabilized their prices, only the white LEDs dropped slightly. Looking forward to Q4, as the capacity of upstream chips has not ramped up in time, and demand has not been met, LEDinside projects that the prices will likely remain flat amid the supply shortage. Similarly for white LEDs, the insufficient chip capacity limits price decline, and LEDinside indicates that the LED chip shortage and price stability is expected last till 1Q10.

According to the industry research institute LEDinside, as demand for LED TV and LED NB expands, LED chips are running short of supply during the second quarter of this year, which has resulted in a more stable price of white LED compared to that of 2008.

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