According to a new price survey conducted by LEDinside, the LED bulb prices for 60 W incandescent light bulb replacements underwent a dramatic drop of 9% in one month, October 2011. The price dropped 10% in America and hit a low of $24.97 US (ASP), with the average selling price declining to $38.60 US. With the November price of $24.97 US a much more consumer friendly price compared to those of months in the past. LEDinside claims the price downtrend is attributed to the price-cutting strategy of Philips which triggered other brands to cut their prices and in turn caused the industry wide price drop
Due to the persisting price downturn, entry level prices are getting closer to the expectations of North American consumers. It is considered that the most acceptable price for a 60 W LED replacement bulb is $10 this is known as the sweet spot for the international market and on international markets scene, the acceptance of LEDs has been increasing.
Reason for Price Drop
There are over 6000 LED companies in China, and competition between them for international market share grows more heated by the day. As the industry matures some players will merge, others will drop out, leaving the remaining Chinese LED manufacturers with very strong product lines with low price structuring.
Several countries are planning to enact subsidy policies to increase the penetration rate of LED lightbulbs and products while governments around the world imposed ban on inefficient incandescent lighting. Many countries including Canada, subsidy policy is still in discussion or has been delayed for political reasons.