Strategically Blogging

Laser Choices Improve Along with Laser Specs

Allen Nogee 03/18/2015

Having just finished all the forecasts and estimations of the recently released report, The Worldwide Market for Lasers 2015, this is the time I step back and look at last year’s laser market in retrospect. It is quite common for industry analysts (myself included) to attempt to “fit” a market they are investigating over other markets which have proceeded it. This is a part of normal human experience - mapping the unknown to what they do know. Unfortunately, what I have found from my experience in technology, 30+ years actually, is that no technology really duplicates another in evolution, no matter how much they may appear similar at first glance.

Key Takeaways from the 2015 China LED Signage Show

Martin Shih 03/16/2015

Strategies Unlimited was invited to present at one of the world’s biggest LED Signage Shows, giving an overview of the worldwide LED signage market and trends for 2015 during the conference. We will also update our signage market data in our upcoming report, “The Worldwide Market for LEDs 2015,” which will publish in April. Although this conference was held right after the Chinese New Year Holidays, which led to fewer attendees than 2014, we still saw all the major LED signage suppliers demonstrate their latest LED signs and outdoor/indoor displays for 2015. 

What is new in the SSL Lighting Industry: Recap of Strategies in Light 2015

Shonika Vijay 03/10/2015

Strategies in Light had yet another successful year of conference and exhibition in Las Vegas two weeks ago. The conference started off with informative workshops and a captivating investor forum showcasing start-ups such as Orama, RayVio, LUXeXceL, LumaStream, Nordic Power Converters, Transphorm, Fusion Optix, Stack Lighting, QuarkStar, and ecoSpectral. The now established company, Cooledge, also reminisced on their first debut at SIL U.S. a few years ago and their journey to becoming a recognized company in the SSL Industry. Here are a few highlights from the show:

Highlights of DOE Solid State Lighting R&D Conference

Shonika Vijay 02/09/2015

Recently, we had the DOE R&D conference in San Francisco. As always, it was a great event as the key industry players and decision makers came under one roof. I wanted to share some of my highlights and experiences from the event. Before that, one of the treats for me was looking at the new Bay Bridge from the shores of Treasure Island. Though I am a Bay Area resident, I regret that I hadn’t done this before—I usually just drive through it. The Bay Bridge looked magnificent, as it wore jewels of LED lights. The directionality of the lights was brilliant and it limited light spillage into the bay. So thank you, DOE, for allowing me this experience.

What does LG Chem's "5 lm/$" really mean for lighting?

Stephanie Pruitt 02/05/2015

LG Chem came out this week claiming to have the world’s highest OLED lumen-price ratio at 5 lm/$, but what does this really mean, and how does it compare to traditional and LED lighting?

To really see how this ground breaking development in OLED lighting compares, I have listed below the average selling prices (ASPs) for the general lighting luminaire form factors that Strategies Unlimited believes OLEDs can potentially penetrate: downlights, troffers, and suspended pendants (we do not believe OLEDs will play in track lighting, high bay, or street lighting due to current lumen output, efficacy, and price).

Consolidation, Part 2--Is Oclaro consolidation or redistribution?

By Tom Hausken
So Bookham and Avanex finally merged, forming Oclaro . This is a sign that the industry is consolidating, right? Reducing the number of suppliers by one, yes. But it may just amount to moving market share around, and not necessarily to fewer players.

Bookham and Avanex don't have greatly overlapping product lines. And the new management claims it will continue manufacturing parts the way it has been. That is, it will keep the Bookham fabs and its Shenzhen facility but will also keep using Fabrinet as Avanex did.

The company points out that now they have a wider range of products to compete against bigger competitors, like JDS Uniphase and Finisar. I've never fully believed the one-stop-shop argument though. Of course, Cisco and any other customer would like to reduce its list of suppliers. But the customers also want suppliers to be competitive, and they want the best products they can find, provided that the supplier is qualified. Grouping products into one company doesn't necessarily make Oclaro more competitive in those products.


There will certainly be some synergies gained from consolidating various functions, such as procurement and corporate overhead. The figure shows Oclaro's vision of the gains it can make in gross margin from the merger. One of the bigger synergies would be the use of the Bookham fabs to supply chips for Avanex products. This is a change in market share, shifting sales from the former suppliers (such as JDS Uniphase) to Oclaro, possibly improving Oclaro's factory utilization. It might also steal some margin from contract manufacturers.


Source: Oclaro


That may turn out real good for Oclaro, although it doesn't necessarily constitute consolidation if it just spreads market share more evenly among some of the bigger players. Without knowing how it plays out product by product, it could actually increase competition and reduce consolidation in some segments.

Oclaro's CEO Alain Couder notes that the company also gets to spread Bookham's credit line over a new balance sheet that is low in debt and with a nice chunk of cash. That's never a bad thing, for Oclaro. And despite claims to the contrary, the management may make more moves once the excitement has died down. Anything that tips the scales dramatically in Oclaro's favor would essentially increase consolidation, even if the number of suppliers is nominally the same.

This may turn out real good for Oclaro. But I wouldn't call it industry-scale consolidation. Not yet.

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