high-definition small spacing LED display price is irresistible?

During the epidemic period, due to the needs of command and control center, monitoring center and conference video, the demand for high-definition small spacing LED display screen is in a state of continuous growth. At present, the LED display screen market is in a relatively low state. The profitable small spacing LED display field attracts many screen enterprises to enter the market. They have launched small spacing products one after another, expanding domestic channels with greater preferential policies and seizing the domestic market. Not only that, the LED screen enterprises that originally focused on overseas countries, due to the epidemic situation abroad and the shrinking market, have also shifted their focus to the domestic market, disrupting the domestic market with small spacing products. According to incomplete statistics, since March, there have been 7 screen enterprises that have released new products with small spacing and laid out domestic channels. There are not only enterprises deeply cultivating the domestic market, but also led screen enterprises returning with foreign trade, and even more, leading enterprises from the security industry. From the multi industry and multi field enterprises look around, the domestic small space LED display market competition is about to enter the white hot stage.

throughout the development history of each industry, after a specific stage of development, it will gradually fall back and return to its original source, including the hot protection industry and small spacing LED display screen. Now, the small space market, which benefits from the needs of the epidemic situation, will also promote the early arrival of small space price reduction because of the catalysis of the epidemic situation. Although the small space market can be expected, enterprises should consider and prevent the impact of the epidemic situation, and can not blindly expand production.

High definition small spacing LED display screen is still a relatively young industry, some people may ask, is it too early to talk about price reduction? The answer is not early, and it is likely that the price reduction wave will come after the epidemic. Small spacing LED display has always been the profit output point of large screen enterprises. According to the 2019 annual report, the performance of small spacing LED display accounted for 58% of the performance of one enterprise in 2019, which became an important source of its performance in 2019; while the performance annual report of another enterprise in 2019 showed that its small spacing orders doubled in 2019, including Latin America business area and China industry Compared with the same period of last year, the number of business district receipts increased by 506% and 123% respectively, showing a strong growth momentum. From the above data, it can be seen that small spacing LED display is an important source of performance growth of large and medium-sized enterprises in China.

At the same time, due to the high profit, many LED screen enterprises list high-definition small spacing LED display as the most important products of enterprises, constantly explore the application scenarios of small spacing LED display screen, expand its application scope, so as to increase the number of small spacing related application products on the market, and promote the market scale of their products. Once the scale effect of industrial chain is formed, the process cost will be reduced, and the price of small spacing LED display will drop sooner or later. During the epidemic period, LED screen enterprises invested more time in R & D, in order to launch more mature products in the future. Most LED screen enterprises used this time to increase investment in small spacing LED display, actively cultivate internal skills, and promote further maturity and improvement of small spacing LED display products. The competition among many enterprises is conducive to the formation of large-scale LED display with small spacing, and further reduce the process cost, so the price of finished products will naturally decline. In addition, it is worth noting that the demand for small spacing LED displays is rising due to the epidemic situation. With the end of the epidemic, the recovery of living order, and the demand for video conferencing and other fields will gradually decline. During the period of increased production capacity, the small spacing LED display market can not be consumed in a short time, which may lead to the problem of excessive production capacity. At that time, when new technologies were constantly emerging and the products were more mature, the surplus products had no advantages at all. In order to consume the products, price reduction would become the general trend.

Not only that, the backlog of small space LED display will also become a major incentive to reduce the price of small space LED display. In the past two years, the small spacing LED display market has shown explosive growth. At the end of last year, many lamp bead manufacturers predicted the market of small spacing LED display screen optimistically. Packaging enterprises were very optimistic about the market of 1010 lamp beads. At the end of last year, Guoxing expanded the capacity of 1010 devices to meet the strong demand for small space. At the end of 19, Cinda and zhaochi launched 1010 small spacing packaging devices, In order to meet the differentiated needs of downstream screen enterprises; the expansion of packaging leading enterprises and the participation of other packaging enterprises promote the further increase of the production capacity of small spacing lamp beads. However, due to the epidemic situation, the overseas market is blocked, the domestic demand can not be pulled, and the overall market is sluggish, which may lead to the overstock of small space lamp beads for capacity expansion. Now, a number of lamp bead manufacturers are facing the plight of tight cash flow, in order to survive, active capital flow, they have to reduce the price of overstocked inventory. Is it still far to lower the price of downstream products when the upstream cost is reduced?