With the coming of 2018, the price rising trend of LED chips is coming to an end. According to relevant sources, many chip manufacturers' individual varieties have even dropped by as much as 25%. Liheli believes that there are two main reasons for the price reduction. For a time, the external environment of chips in short supply has changed for many years. Second, many LED display manufacturers have been fighting for prices for many years. Just this year, several major LED chip manufacturers are all Eight Immortals crossing the sea. From the growth of supply, if we end 2017, compared with the growth at the end of 2016, we can fundamentally change the relationship between supply and demand.

Experienced in the upstream and related accessories even rising prices of LED display manufacturers are not happy? When the prices of raw materials and related accessories rise, display screen manufacturers should maintain the original prices as much as possible. The price reduction of upstream chips is good news for the whole industry, and the cost price of LED display screen will also drop accordingly. It is really the end of the struggle. However, due to the strategic demand of some enterprises to occupy the market, it is very possible to reduce the price of LED display.

In order to occupy a larger market share, it is common to make profits and reduce prices. Cost has been plagued by the development of manufacturers. People in the industry know that the price difference between LED display and LCD display with the same size is several to dozens of times. Although in the field of large display, LED display has many advantages over LCD, but the high cost will stop many customers. Shangxian market is the market with high net profit, so it is also the most competitive market. Now, the price reduction of upstream chips gives display manufacturers room for price reduction. In addition, in order to suppress competitors and maximize profits, it is common to use the sharp competitive means of differential price reduction. With the maturity and popularization of technology, small space technology has gradually become a popular technology, and the small space market has gradually become a competitive Red Sea. It is inevitable that the price war will be fierce.

The difference between amateur manufacturers and professional manufacturers is that the former takes one step at a time, while the latter takes one step at a time. In the LED display industry, which attaches importance to both service and quality, few enterprises can take one step to see several steps, but few enterprises have the capital to take one step to see three steps. What will these powerful enterprises with the most advanced technology do at the time of chip price reduction? The price reduction of upstream chips will accelerate the pattern change of LED display industry, and make the enterprises with deep strength have better growth space and clearer polarization. Price war has always been the sword of LED display industry and the most powerful weapon. With the maturity of the industry, powerful enterprises will have bargaining power in a certain field, and will also make enterprises move to a higher peak, while ordinary enterprises are in a more difficult situation. For many reasons, liheli believes that the price reduction of upstream chips is good news. It can reduce the burden of enterprises.