How will LED display prices change in 2019

It is well known that the LED display, small and medium enterprises prefer to self digestion to resist the pressure of the rising prices also don‘t want to rise in price, because they know that, once the product prices will lead to the loss of enterprise customers, new customers development will be more difficult, instead of the abandoned by the market risk, than a bullet through the period of rising costs of crisis.Hope to usher in the next turn of the arrival, but such an opportunity will not come?

In fact, both stand in the Angle of the industry and the user‘s point of view, higher raw material and LED the rise in the upstream products, this will be reversed transmission price LED display enterprise, in order to the benign development of the enterprise, reasonable profit space is necessary condition, increase in the price of LED display, small and medium enterprises is under the external and internal digestion price to solve the problem of price.Therefore, it is reasonable for LED display manufacturers to increase the price, and even drive up the price of the whole LED market, thus pushing the LED display industry out of the vicious competition of "low price" and into the benign price competition.

For now, the LED display technology continued to deepen, and under the condition of enterprise resource integration ability strengthen, LED a listed enterprise production cost advantage gradually emerges, relative to the increase in the price of LED display, small and medium enterprises, listed companies LED tap and not affected by the "boom", instead, LED display leading listed companies also can rise in price in the industry in creating more value for enterprises and users.

Amid the industry buzz, leading companies with LED displays are cutting prices.It has to be said that the industry leading enterprises are strong, but it should not be ignored that for manufacturing enterprises, technology and capacity are their dominant advantages.The listed LED display panel manufacturing company has strong technology, and its strong capital reserve enables it to make greater investment in technology research and development and production equipment, strengthen its production capacity, integrate numerous excellent supplier resources, and build a better industrial chain.In this way, the production cost can be effectively reduced from the capacity advantage, and the trend of rising prices in LED display industry can be broken by reverse-flow with the way of price reduction, so as to give more profit space to customers.To some extent, the price reduction of LED display leading enterprises is a change based on their own capacity advantages, which drives the enterprises to integrate resources and achieve sound development.

It can be seen that LED display enterprises are constantly promoting the optimization of enterprise technology, production capacity and supply chain, which will effectively improve the cost advantage of enterprises and make profits to more customers.It can be predicted that the price cut of the downstream leading enterprises will force more enterprises to carry out internal capacity and supply chain optimization.

Looking at the overall price changes in the LED display industry, we can clearly see a phenomenon: the price increase is LED upstream leading enterprises, the price reduction is LED downstream leading enterprises, and the small and medium-sized enterprises in the LED downstream are in a passive state, and if they do not advance, they will go back.

As is known to all, the survival of small and medium-sized enterprises depends on price advantage, and the development of second - and third-tier markets depends on price advantage to maintain their survival.As the upstream market price of famous brand enterprises and reduce the price of a double attack, inevitably some of the small and medium-sized enterprises sales must be nibbled away, accelerate the LED display industry reshuffle, but does not represent is the unbreakable is small and medium-sized enterprises, but reversed transmission with the LED display more to pay attention to the enterprise production optimization, for effective resource integration, so as to further speed up the popularization of LED display products.

It is just a few years since the beginning of 2018. Under the situation that people in the industry generally think that the price increase of LED industry is a foregone conclusion, the news of the price reduction of LED display companies spread in the industry.Some are raising prices and others are lowering them. Do you really understand?

Looking back on this "rising tide", it can be said that "a single spark can start a prairie fire".In early 2016, LED upstream large leading enterprises took the lead in raising prices, but the impact on the price of the whole industry was weak and there was no storm.After a period of time, due to the enterprises‘ own operation and industry response measures, the leading manufacturers of LED chips in the upstream have continuously sent out price increase notice again and again, which has triggered a whole body. The successive price increase measures of LED upstream have attracted the attention of numerous LED display enterprises.Also, since the second half of 2016 manufacturing rise in bulk of raw materials, manufacturing costs, animating the whole LED industry industry long price trend is gradually increasing, many LED display of small and medium-sized enterprises can‘t afford the rising cost pressure, with prices to cope with the rising cost of crisis in succession, the LED industry into a vigorous "boom".

After the price hike of the whole year of 2016, the LED display industry has received positive development momentum. LED chips are in short supply, and LED enterprises have expanded production and increased income.However, in 2018, the LED industry still has a "price hike trend". Whether the price hike will still be a big problem for small and medium-sized LED display enterprises.Because, in 2016 LED display enterprise price increases, price increase announcement is only part of the enterprise, their main business LED business, the rise in raw material matches the enterprise cost and revenue, profit, price increases in upstream LED enterprises, downstream LED display, small and medium enterprises can‘t self confined conditions, can only be an increase in the price of the product, maintain a certain profit margin.In addition, the reason why upstream LED enterprises dare to raise prices again and again is that the upstream of LED has become mature, and the price increase can be easily implemented to promote the industry reshuffle process.However, there are many enterprises in the downstream LED display screen with different levels. Some small enterprises rely on cost performance to survive, and it is difficult to realize price increase. This is also an important reason why small and medium-sized LED display screen enterprises do not price increase easily.

Although we have been saying that the price will rise, in this year, the price will rise mainly from upstream suppliers. The downstream LED display manufacturers have not raised the price of LED display screens.Regarding whether small and medium-sized LED display enterprises will continue to increase prices this year, some industry insiders said: "at present, most LED enterprises are trying to save product raw materials by optimizing product structure.Simplify production process and reduce manpower cost;Expand production and increase sales to ease the pressure caused by price increases.Many LED companies are still taking a wait-and-see attitude at the beginning of the year. If the price hike increases again in the future and touches the bottom line of business, then the phenomenon of large volume price increases will happen again.