Strategically Blogging

What’s going on with CREE?

Martin Shih 06/26/2015

Cree has announced that the company will restructure its LED business in order to reduce overhead and to improve the business’s cost structure in the future.

Turn-Key Connected Lighting Solutions May Not Be Appropriate For All

Shonika Vijay 06/26/2015

This blog is another piece on the connected lighting market. To see our previous articles on the connected lighting market refer to: 'With More LED Street Lights Comes More Connected Lighting,' 'Lighting Industry: 2014 in Review and What to Expect Next,' and 'Let's Talk Controls'.

Key takeaways from Guangzhou International Lighting Exhibition - Pricing, pricing and pricing!

Martin Shih 06/10/2015

This week we attended Guangzhou Light Exhibition, the biggest lighting fair in China. There were more than 3,000 booths and full-three-day conferences. 

CSP: Big Potential in a Tiny Package?

Stephanie Pruitt 06/03/2015

Chip Scale Packaging (CSP), originally from the semiconductor industry, continues to make headlines in the LED industry.

Sales of Laser Pico Projectors Projected Up

Allen Nogee 06/03/2015

Back in 2009, LG released the first pico projector smartphone combination, the LG eXpo. This smartphone was sold by AT&T and the pico projector was sold as an add-on for an additional $180. 

A plea to maintain opto prices

By Tom Hausken
How much will price erosion destroy opto revenues this year? That's one of the great unknowns in forecasting the market for 2009. Will suppliers behave themselves and hold prices above their costs? Or will they sell products at any price just to get cash flow for another quarter?

It's bad enough that the demand for components is sharply down as a result of the recession. Cutting prices only makes it worse. It's not like a company can brag about having market share if they lose money on every product going out the door. And in most of the opto market, high prices aren't holding back--the worldwide recession is to blame for that.

This is what has happened for years to several companies in telecom components. Some were selling below their cost. Consistently. And it spoiled the market for everybody.

I have to admit that I would be the first to argue that, in the end, the market forces ultimately prevail. That is, if there are enough competitors and the situation is desperate enough, suppliers will cut and run to get any business at all. Asking suppliers to remain calm and rational is not likely to make a difference.

And if fact, since last fall I've heard of discounts of as deep as 30% and 50% on standard prices. And then there's the used equipment market. What's a supplier to do when it is competing against its own products on the gray (used equipment) market?

Just the same, I hope that suppliers can look longer term and stick to a sustainable business strategy. It's going to be a long, cold recession and companies will be better off if they huddle together for warmth than if they wander off alone.

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