Improving Affordability: US LED Bulb Market Price War Resumes

　　For a long time, high prices have deterred many American consumers with energy-saving intentions from buying LED bulbs. Now, as industry giants ease up on prices, the situation will gradually improve, but it also means the price war in the US LED bulb market has reignited.

　　Cree, a US company, launched a new LED bulb priced at $19.97, equivalent to 100W, on Wednesday. This brightness level is the first choice for many household lighting applications, so this type of bulb has always received significant market attention.

　　Cree was one of the few LED chip leaders to enter the consumer LED bulb market only last year. In just one year, the price of the company's bulb products sold through Home Depot has dropped by 23%. For example, one of its LED bulbs equivalent to 60W dropped from $12.97 to $9.97. "We want to make prices more affordable," said Mike Watson, Cree's Senior Director of Marketing and Product Applications.

At the same time, another giant in the lighting market, Philips, is also unwilling to sit on the sidelines. On Monday, Philips released an LED bulb equivalent to 60W priced at $9.97. Another bulb equivalent to 100W is priced at $24.97. The company stated that all Philips bulbs have received the Energy Star certification issued by the U.S. government, allowing buyers to receive rebates as a result. (Cree claims that its bulbs equivalent to 75W and 100W are still pending Energy Star review)

While the giants are fighting it out, newcomers are also preparing to join the fray. Switch, an emerging company headquartered in San Jose, California, said its LED bulbs equivalent to 40W and 60W are currently sold for $11.99, and the company is expected to sell products equivalent to 75W and 100W at low prices this year.

According to estimates from market research firm Strategies Unlimited, the global revenue of A19 specification LED bulbs in 2013 (i.e., the specification for replacing 100W incandescent bulbs) was only $1 billion. Under the wave of price wars, this figure is expected to grow to $5.2 billion by 2018.

"Price is the only stumbling block for household consumers," said Philip Smallwood, market analyst at Strategies Unlimited. "The significant price cuts by Cree and other companies will effectively drive the wave of LED bulb replacements."