Market slump, price reduction of small-pitch LED displays has become a foregone conclusion
The global market is sluggish in 2020, and all walks of life are affected to varying degrees. The LED electronic display industry is no exception, especially LED display manufacturers as manufacturers also have to bear the cost of rent, labor and equipment. Demand for security, monitoring, command center and other displays has slowed down significantly. In the market downturn, the price reduction of small pitch LED displays has become a foregone conclusion.
Market slump, price reduction of small pitch LED displays has become a foregone conclusion
The small-pitch high-definition LED display itself is a mid-to-high-end product, and its profit is much higher than the conventional indoor LED display and outdoor LED display. This is why many LED screen companies focus on the development of small pitch. In order to seize more market resources, in addition to research and development of smaller pitch products to improve product stability, reliability and reduce product failure rate, the major LED display manufacturers also carry out product price reduction and promotion. With the joining of foreign trade enterprises and leading security companies, the competition in the domestic LED electronic display market is becoming more and more cruel.
Since the LED display manufacturers have developed small pitch LED displays, they have always become an important profit point for enterprises. It is precisely because the small pitch is a high-margin product that it has become the focus of the major LED screen companies and security and other leading companies. To this end, the major LED display manufacturers continue to explore the application scenarios of small-pitch high-definition LED displays, expand their scope of application, thereby expanding market demand and forming a large-scale product market.
If the small pitch is formed into large-scale production, then its cost will naturally fall, so product price reduction will become a natural thing. Affected by the epidemic, the orders of LED display manufacturers have been largely lost. However, some companies are not discouraged by this. Nationvision LED display manufacturers use this spare time to increase R & D investment to further improve the stability, reliability and innovation of small pitch LED displays.
In addition, many LED screen companies have joined the small-pitch R & D queue. Although the market competition is becoming more and more fierce with the participation of enterprises, on the other hand, it is conducive to the large-scale development of small-pitch LED high-definition displays, thereby improving product technology and reducing product costs.
Previously, the market demand for small pitch LED display screens increased due to the epidemic. Now the domestic epidemic has been controlled, and the demand for display fields such as video conferencing has also slowed. The sudden increase in production capacity during the epidemic will also cause a problem of inventory backlog due to the decline in market demand. In order to promote these inventories more, LED screen companies have to make a decision to reduce prices. In addition, the product replacement cycle is getting shorter and shorter. If excess products are not dealt with price reduction, then sooner or later it will become a burden for enterprises.
The traditional small pitch LED display packaging method is mainly based on SMD, but as the pitch enters the era of P0.X, the traditional SMD has been unable to meet the needs of the development of the times. Therefore, Nationvision LED has developed a 4-in-1 Mini LED / Micro LED micro-pitch product to further reduce the lamp bead pitch and chip size. At the same time, these two technologies are recognized by the industry as the mainstream and development direction of small-pitch packaging technology in the future, and these two technologies can encapsulate P0.X micro-pitch products with lower cost, higher stability and reliability.
In addition, if the packaging technology of small pitch LED displays in the future is dominated by four-in-one Mini LED / Micro LED, then traditional SMD lamp beads will generate a lot of inventory, and LED packaging manufacturers can only do price reduction to deal with inventory As a midstream LED display manufacturer, the price will naturally drop. Last year, the market demand for SMD1010 lamp beads increased greatly, causing many LED packaging manufacturers to expand production, but this year the domestic market demand is limited, the foreign market is blocked, resulting in the global market slump, making lamp beads manufacturers face tight cash flow, in order to survive , These packaged devices can only be processed for price reduction.
All in all, due to the impact of environmental factors in the entire global market, the current market is sluggish, and the price reduction of small pitch LED displays has become a foregone conclusion. The reason for the price reduction of LED display manufacturers is not only because of the large-scale production and inventory backlog of products, but also because the upstream SMD packaging manufacturers are affected by the new four-in-one Mini LED / Micro LED packaging technology, thinking that inventory pressure and other factors, Have to carry out price reduction, which led to the midstream LED screen companies to reduce prices for products.
