In 4Q10, backlight unit (BLU) makers had cut down small- to medium-size BLUs’ price to grab orders. And most small- to medium-size BLUs’ customers expected the price would decrease more than 5% in 4Q and LED players would continue to feel pressure to reduce prices in 1Q11.
Market sources estimated that LED-backlit TV market would have a 50% share in the total LCD TV market in 2011 and LED chips prices were expected to drop by 30% in the next two quarters.
Although some LED packaging houses started to see revenue growth in November, overall demand for TV backlighting remains weak in the LED weak season. Overall revenues in 4Q10 would expected to drop 15-20% sequentially in the small- to medium-size BLU business’ weak season, while demand growth for new models in 2011 was slow. Significant growth in revenues was expected to start in 2Q11.
