2017 Rental LED Display Screens Price Will Continue to Increase

rental LED display screens

With the news broke that the price of LED screens will increase, it seems that 2017 LED screen price increase have become a foregone conclusion. Even if most of the LED screen rental and sale companies are expanding their production, but did not see any news of price decrease. It is these leading enterprises who are expanding, also those leading enterprises take the lead to increase the price … … Is there any possibility that the price of rental LED screens may decrease? From the current situation in the short term, the price will still increase. Nowadays, the price increase in the whole LED screen industry has become an established fact.

1. The LED screen rental and sale companies’ gross profit is very low.

Although the LED industry upstream has gone through several rounds of price increase, but at the current price level, only these first stream LED chip manufacturers are running in a profitable state, second-tier LED chip companies are still below the break-even line, capacity expansion is still insufficient. The price of materials for rental LED display screens will still slightly increase to a higher level.

It is understood that the price of rental LED display screens upstream material prices still has space to increase. The upstream leading enterprises reshuffle the industry through price increase, even if they can successfully eliminate some backward production capacity, but in the reshuffle period, the price is still in the rising stage; after the shuffling, the industry pricing power will be concentrated, and the price will go back to rational stage. Therefore, whether the price can be reduced to the original low price or not, perhaps we can only rely on the upgrading of technology or another round of industry overcapacity appeared.

2. The LED chips for rental LED display screens will be in a state of short supply.

According to the relevant agencies, by the end of 2017, LED chip effective production capacity is about 83.28 million pieces, while the demand is about 92.35 million pieces. Among them, the demand for lighting chip is 47.04 million pieces, an increase of 20% compare to 2016; outdoor full color rental LED display screens demand is 26.02 million pieces, an increase of 5% compare to 2016; indoor small pixel rental LED screens demand is 102 million pieces, an increase of 50% compare to 2016; mobile phone backlight unit demand is 1.39 million pieces, Tablet PC backlight demand is 44 million, computer and television backlight unit demand is 699 million pieces, automotive lighting demand is 1.06 million pieces. Since the LED chip production capacity is still lower than the demand, and the market demand will keep a steady growth in 2017, LED chip will be in a state of short supply. Therefore, more and more LED screen rental and sale companies are trying to increase the price of their rental LED screens.

3. The cost of LED chips will be shifted to the downstream rental LED display screens.

LED chip companies in the forefront of the industry chain mainly influenced by raw materials cost, labor costs and manufacturing costs; in the packaging part, 45% of the packing cost are from the upstream LED chip company. The LED screen rental and sale companies are at downstream, the cost of packaging is also a big part. It can be seen that these three parts have a mutual conduction connection, the front-end costs will be passed on to the downstream. The agency expects the future LED price increase is expected to heat up due to factors such as the slowdown in the downstream packaging plant and the expansion of downstream demand.

From Glux LED Screen Rental https://gluxledscreen.wordpress.com/2017/02/14/2017-rental-led-display-screens-price-will-continue-to-increase/