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What Exactly Have LED Screen People Experienced In 2018

Nov 01, 2018

This year, the traditional "nine silver ten" season has come to an end, LED display industry's peak sales season has not yet arrived, LED many people sigh that the "nine silver ten" magic law no longer.

September and October are the season of the fall harvest, the most precious of the year. From previous years, the traditional sales peak season of LED display industry, "gold, silver and ten", is approaching. Both the demand of end consumers and the purchasing ability of consumers are reaching the peak of the year. Many LED display enterprises want to expand production scale, increase investment and expand channels.

But this year, the traditional "nine silver ten" season has come to an end, LED display industry sales peak is still not coming, LED many people sigh "nine silver ten" magic law no longer. The LED display business is getting harder to do, so what exactly are LED people going through in this treacherous 2018?

Rising cost pressures on raw materials are building

This year, LED upstream raw materials market rose again, from July, including omv electronics, the group, the industry's major PCB manufacturers have issued price increases, prices are at 20-30 percent. Before that, the price of electronic components, including resistance capacitance, has increased, which makes the situation facing most downstream LED enterprises more serious.

The rise of upstream raw material prices leads to the rise of procurement costs, which will undoubtedly bring some cost pressure to downstream LED panel manufacturers. In order to relieve the pressure, some leading LED LED by eliad in the industry have issued price adjustment notice to increase the product price to a certain extent. However, throughout the LED display screen industry, small and medium-sized enterprises with weak overall competitiveness and no economic strength as support account for the majority. For these enterprises, they are at a loss due to the sharp rise in the price of raw materials and the rise of some leading enterprises.

In general, in order to bring high-quality products and services to customers, many leading enterprises in the LED display industry choose internal digestion under the pressure of cost. They rely on optimizing internal production process to reduce the number of workers so as to reduce production costs. This is a blow to small and medium-sized enterprises that do not have sufficient economic turnover. Faced with most leading enterprises that do not increase prices, small and medium-sized enterprises, which always take price as an advantage, can only raise the price of products to avoid losing the original market share, and continuously compress the profit space of products. In this process, the process of reshuffling the industry has been accelerated imperceptibly. Those enterprises without economic competitiveness have been gradually eliminated, and what can be left is to "beat the fat in the face" and try to find a way out.

Trade between China and the United States has become increasingly tense 

Since July 2018, the sino-us trade war is ablaze, has been in the past for more than three months, and there is growing trend, the United States of imposing a 25% tariff the $50 billion of goods imported from China, last month and imposing a 10% tariff on $200 billion worth of Chinese goods, if China continues to take countermeasures, the United States will come back to the $267 billion China imports tariffs, this is almost equal to all of China's imports of imposing a tariff. Such a wave after wave of intense collisions, LED display industry will also be affected.

In recent years, with the rapid increase in the number of domestic LED display screen manufacturers, the living pressure faced by LED screen enterprises has been gradually added, making many famous LED display screen manufacturers invest their eyes overseas. According to the export data in recent years, the United States is China's largest export market for LED display panels. After the sino-us trade war this year, the overall international economic situation is declining, the international environment is becoming increasingly complex, and a number of factors, including the reduction of government support for the LED industry, have LED to the growing pessimism in the industry. The specific performance can be reflected in the stock prices of various listed companies since the beginning of this year, which have taken A collective dive since the beginning of the year. In addition, the recent a-share crash caused by the impact of the U.S. stock market, almost all LED listed companies have been cut in half so far, and some companies have even seen their share prices cut.

Technology incubation period is too long and new products are too slow

It is the first year of technology in 2018. From the COB packaging technology trend that was initiated at the beginning of the year, to the breakthrough of MiniLED and Micro LED technology, more and more enterprises are reporting that MiniLED is ready to realize mass production. In order to catch up with the mainstream market and seize the market opportunity, more and more manufacturers are increasing their investment in new technology research and development, hoping to enter the mass production stage of new technology products as soon as possible.

The dream is full and there are some backbone in reality. Although the technology of products such as COB, MiniLED Micro LED and so on keeps making breakthroughs and gradually matures, from now on, they still have a long way to go before they are truly marketable. For some companies, the long - term large capital input, but no real feedback, is the final straw. In addition, the incubation time of technology is too long, and products are not innovated, which directly inhibits the revolutionary process of the whole industry and limits the development of more diversified enterprises.

Despite the growing market share of LED display industry, the market environment is also changing rapidly, bringing huge challenges to many LED display companies. Experience will bring some risks, but it will also make LED screen people stronger. We will improve ourselves from multiple aspects in advance, and we are confident about the future development of the enterprise.