With the development and maturity of small space LED display, some people in the industry said that the current LED display market is in a state of “demand exceeds supply”. Due to the closer space between indoor and outdoor, the market demand for lamp beads is increasing, which also prompted the upstream and midstream production enterprises to increase production scale.
it is understood that with the decline in the prices of some finished products, many downstream LED display manufacturers have increased their production capacity to ease the pressure of price competition. However, the increasing demand of downstream manufacturers also prompted the upstream and midstream raw material manufacturers to expand their production scale to meet the demand of downstream markets. However, in recent years, with the economic downturn, the survival pressure of enterprises has increased. With the rise of some costs, the cost of raw materials in the upstream of LED display increased.
as we all know, in the production process of LED packaging devices, raw materials account for 75-80% of the production cost, so in the case of rising raw material costs, it will inevitably bring certain production pressure to packaging manufacturers. It is understood that the current number of LED packaging units with gold wire is about 15-18 yuan, while the relatively cheap copper wire is 8-1.5 yuan.
at the same time, some people in the industry have disclosed that for high-level packaging devices, large packaging manufacturers are more willing to purchase international brand accessories products. Undoubtedly, the price of international brand accessories products is relatively high. In such a case, it is not difficult for packaging manufacturers to adjust the price.
low price competition bottoms out, high quality makes the price rise. In recent years, with more and more people making LED display screen products, the homogenization is serious, resulting in the rapid decline of price. Even though the production capacity and sales scale of enterprises have increased compared with the same period of last year, the intensified market competition has led to a sharp drop in product prices and a narrowing of gross profit space. In this regard, some insiders said that in terms of prices, raw materials such as LED display chips and packaging have bottomed out. Or in other words, low price competition is not enough to support the rapid development of LED display enterprises.