LED pricing dives on falling demand

LED prices fell sharply in the third quarter of 2010 due to a sudden decline in demand, including inventory adjustments resulting from less-than-expected large-size panel and lighting application demand, reported LEDinside,Taipai,Taiwan.

LED pricing for large-size panel applications fell approximately 11 to 16 percent while tags for high-power LEDs used in lighting applications dropped more than 17 percent, according to the LED industry research institute. For mobile applications, LED prices remained flat with about three to four percent seasonal erosion thanks to relatively stable demand.

The price of mainstream 5630 LEDs for TV backlight applications fell about 11 percent, settling at $0.12 to $0.17. Similarly, LED prices for NB and LCD monitor backlight applications dropped between 12 to 16 percent.

Price pressure is expected to stabilize between the end of the fourth quarter of 2010 and the beginning of the first quarter of 2011, when demand for large-size backlights is expected to pick-up again.