Will the price of small-pitch LED display usher in a price reduction trend?

Due to the global economic recession in recent years, the touch display industry, which is the icing on the cake, has greatly restricted the supply and demand of its products. But judging from the manufacturing scale and market demand increase of the small-pitch industry in recent years, the current applications of small-pitch LED screen companies are in a growth period as a whole. Relevant statistics show that the scale of domestic small-pitch LEDs reached 8 billion yuan in 2018, an increase of 60% year-on-year. It is estimated that China's small-pitch LED market will reach 44% in 2018-2020, and the industry will continue to grow at a high rate. But it is in such a background environment that there is an extremely dissonant voice: the small pitch will usher in a wave of price cuts. Some people say that only when the price drops, the market volume will become larger and larger. This sounds reasonable at first, but it does not apply to the current market situation. From the beginning, the small pitch of LEDs has followed the mid-to-high-end route. Compared with the low-end market, the mid-to-high-end market pays more attention to the brand and the manufacturer of the product. Strength, from the widening field of small-pitch LED cinema applications, high-end conference displays, small-pitch TVs, and indoor interactive commercial displays, you can see that this is the positioning of small pitches, and use high quality to create high returns. This is what LED screen companies have been doing. Things. It seems reasonable to say: First of all, from the perspective of the definition of small spacing, last year the industry's definition of small spacing was still below P2.5, and now products below P2.5 have been regarded as conventional products, and the industry's definition of small spacing has been refreshed. It is below P2, which shows that the public is increasingly demanding small pitch; secondly, from the perspective of market coverage, the expansion of market demand can truly realize the commercialization of small-pitch LED displays; finally, from the perspective of small-pitch technology, The industry's technology is becoming more and more mature, and mass production is beginning to dominate, which will naturally lead to further price reductions. But such an argument is simply untenable. Why do you say that? Due to the higher definition, the density of the lamp beads also increases, and the small-pitch products also have higher requirements for the production process and equipment. Because of this, ordinary LED screen companies, especially non-technology-led companies, who want to develop small-pitch products, must form a Ru0026D team and invest a lot of Ru0026D and equipment funds. In the end, the technology may be improved and the products can be mass-produced, but it cannot fundamentally solve the dilemma faced by touch display companies: the increase in human labor costs, the price increase of PCB boards every three to five; the price reduction of display screens? May drop? Of course, it may also rise. With the continuous improvement of small-pitch technology, it is a reality that the application and market scale of small-pitch LED displays are getting larger and larger. For small-pitch LED brand manufacturers, how to use technology differentiation, build high-end market barriers, and maintain their high-value image has become a challenge for touch display brand manufacturers. In the short term, if the small-pitch LED display does not have a major technological breakthrough from the upstream, the cost will be difficult to shake this trend. Although the price reduction is the current trend of the small-pitch market, it will not come soon.
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