According to Taiwan's supply chain manufacturers, Philips recently asked ODMs/OEMs (original designer manufacturer/original equipment manufacturer) in mainland China and Taiwan to lower the LED bulb ex-works price by US$0.8 in 2016.
The source said that at present, the ex-factory price of cheap, simple-design LED bulbs launched in the second half of 2015 has dropped to the lowest level of US$1 to US$1.2. China's ODMs/OEMs companies are accumulating production cost competitive advantages and striving to lower their prices. At a price lower than the current one dollar.
It is difficult to reduce the price to $0.8 by simply reducing the cost of LED chips and packaging, which will necessitate minimizing total production costs by providing new designs.
Taiwan-based LED packaging service provider Yiguang Electronics said it has used LED chips made in China to make LED bulbs, and the corresponding ex-factory price can be reduced to $0.9 development solution.
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