Since the beginning of the new year in 2021, major upstream raw material manufacturers in the LED display industry have successively issued price increase notices, leading to continuous increases in the purchase cost of LED raw materials (see details). As the upstream price increase surges all the way, the wildfire of price increase still burned to the downstream enterprises of the manufacturing, LED display companies such as Leyard, Unilumin, Absen have also issued price increase notices.
Leyard
On May 14, Leyard released the “Explanation on Global Price Increase of LED Display Products”. Leyard said that because of the increasingly tight supply of major upstream raw materials (semiconductor chips, lamp beads, PCB, etc.) and the significant increase in costs, Leyard, as the world’s largest LED display manufacturer, can still guarantee materials supply. but the increase has also led to a corresponding increase in the production and manufacturing costs of our LED display products.
To ensure R&D investment, product quality improvement and achieve this year’s production and operation goals, Leyard’s production bases will increase the ex-factory prices of products globally from May 17, 2021; it is expected to affect different series of Leyard products The market sales price of the country increased by 3-15%.
Unilumin
It has to be said that the price increase of raw materials is a problem for the entire industry, and fierce competition makes it difficult to pass the cost completely to the end-user.
Hu Yan, Chief Financial Officer of Unilumin Technology Corporation, recently stated on the investor relations interactive platform that the price increase of upstream raw materials is a problem for the whole industry The company will balance the target value and adjust the price of some products appropriately to release part of the pressure.
Absen
Absen said that the company will adjust its sales price to customers based on market competition and company strategy.
In response to the increase in raw material prices, Absen stated at the investor interaction event on May 7 that the company adheres to the core values of “integrity, gratitude, and responsibility”. uses its advantages to strengthen cooperation with upstream suppliers, and obtains strategic upstream suppliers. Support; At the same time, based on capacity forecasts and production planning, strategic stocking of key materials to ensure relatively low-cost material procurement and supply guarantee; In addition, the introduction of new materials, new technologies, and new equipment applications to improve efficiency and reduce overall cost.
How much did the price go up?
Looking back at the origin, the price increase of various upstream raw materials, and the mismatch of various supporting devices and materials, have played a role in promoting the price increase of display products.
Previously, according to statistics from Experts, among the materials involved in display products, chips increased by 15-20%, driver ICs increased by 15-25%, metal materials increased by 30-40%, and PCB boards increased by 10- 20%, RGB devices increase by 4-8%, and display screens increase by 10-15%. (PS: As the price trend continues to rise, the price increase information may be lagging. Please refer to the latest announcements of the current companies.
How shoud we deal with the price increase.
In my opinion, the current price is likely to be the lowest price for a long time in the future. Moreover, as long as the price goes up, it will be difficult to call back, because it is impossible to take back the US dollars issued by USA and the currency issued by other countries.
In addition, the major shipping companies have also joint to raised prices recently, I hope you can make reasonable order & shipping plans.
