Recently, the wave of price adjustments in the LED industry has heated up again. After Mulinsen, Jingtai, and Xingxin Semiconductor took the lead in issuing product price adjustment letters, the market heat quickly spread within just one day. Dongshan Precision, Lanke, Dahe Semiconductor and other representative companies in the LED packaging field successively announced the news of price increases for some products, and the price increase is highly concentrated in the range of 5% to 10%, bringing new dynamics to the industry market structure.——
rising raw material costs
If the time dimension is extended to the first two quarters of this year, it is not difficult to find that price adjustments in the LED industry have formed a normalized trend. Among them, price adjustments in the first quarter were particularly intensive, with many leading manufacturers following up adjustments one after another, and the overall price system of the industry is gradually being restructured. An in-depth analysis of the reasons for price adjustments disclosed by major manufacturers shows that they have always been the core driving force throughout multiple rounds of price adjustments. From basic metals to upstream core components, the continuous transmission of cost pressure ultimately encourages companies to maintain operating balance and product quality through price adjustments.
Dongshan Precision: Use price adjustment to break vicious competition and promote the industry to return to reasonable value. On August 12, Yancheng Dongshan Precision Manufacturing Co., Ltd. officially issued a "Contact Letter", detailing the background and considerations of this price adjustment. The company pointed out in its letter that since 2022, the LED packaging industry has been caught in the dilemma of vicious competition at irrational low prices. A long-term price war below a reasonable level not only deviates from the normal market operation logic, but also weakens the industry as a whole. Innovation and development momentum. At the same time, the prices of basic materials needed for the production of gold, silver, copper and other lamp beads have risen sharply, directly leading to the continued rise in product costs and increasing operating pressure on enterprises.
In order to achieve the company's sustainable development, promote the return of LED packaging products to a reasonable value range, thereby helping the industry get rid of vicious competition and move towards a healthy development track, and at the same time ensuring that product quality and service levels to customers are not affected, Dongshan Precision decided after careful study: The price of some products will be increased by 5%-10%, and this price adjustment will officially take effect from the date of the letter issued on August 12 to quickly respond to cost changes and market demand.
Lanke: High prices of raw materials are under pressure, and price adjustments are used to ensure service stability. On the same day, Shenzhen Lanke Tour 'an Optoelectronics Co., Ltd. also issued a price increase letter simultaneously. It clearly stated in its letter that the core reason for this price adjustment is that the prices of raw materials such as upstream precious metals have been at a high level for a long time, and cost pressure has had a significant impact on the company's production, operation and service capabilities. Based on comprehensive judgment of multiple factors such as current market supply and demand, industry competition situation, in order to ensure that it can continue to provide customers with stable and high-quality products and services and avoid quality shrinkage due to cost pressure, Lanke has determined after thorough internal discussion: Since the issuance of the price increase letter From the day of the letter, the price of some products of the company will be increased by 5%-10%. The latest selling price of specific products will be based on the official quotation issued by the company in the subsequent period to ensure that the price adjustment process is transparent and standardized.
Dahe Semiconductor: Taking into account supply and demand and costs, and building a solid quality foundation through price adjustment. Also on August 12, Shenzhen Dahe Semiconductor Technology Co., Ltd. issued a price increase notice, explaining the price adjustment logic from a more comprehensive market perspective. The company said that this price adjustment is a decision made after comprehensively considering multiple factors such as dynamic changes in supply and demand in internal and external markets, fluctuations in raw materials and production link costs. In order to continue to ensure the stable supply of high-quality LED packaging products, further optimize the customer service system, improve service quality, and avoid constraints caused by cost pressure on product development and quality control, Dahe Semiconductor decided after careful evaluation: From the day of the price increase notice, the price of some products will be increased by 5%-10%. The specific selling price will be based on the latest quotation provided by the company to ensure smooth cooperation with customers.
Judging from the centralized price adjustment actions of three companies in a single day, the LED packaging industry is gradually alleviating cost pressure through the price mechanism, while promoting the industry's transformation from low-price competition to value competition."""" Subsequently, with the changes in the trend of the raw material market and the relationship between supply and demand in the industry, the price system of the LED industry may continue to adjust, and how companies find a balance between cost control, quality assurance and customer demand will become their foothold in market competition. The key.
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