LED spot market analysis (2006)

The recent spot market shows that LEDs are affected by customer inventory and the impact of the off-season. December revenues generally declined compared with November. In addition to the traditional off-season in the first quarter of 2006, the industry expressed concern that the recent LED performance has rebounded sharply. . Since the fourth quarter and the first quarter of each year are the traditional low season of LED consumption, plus the inventory effect in December, dealers said that the LED market has been able to feel the impact of the off-season in December. LED industry confessed that due to factors such as inventory reductions at the end of the year and reduced purchases, December revenues generally declined slightly from November. At present, the outlook for the first quarter of 2006, the industry also believes that due to the industry entering the traditional off-season, it is expected that the first quarter of this year, revenue will also fall from the fourth quarter of 2005, and some industry estimates, the decline is about 10% up and down. At present, the industry initially expects that the LED market operation recovery will at least wait until March this year, the development of new applications and the increase in LED shipments of mobile applications will gradually drive LED performance back. Judging from the current market situation, the decline in demand during the Spring Festival will affect the LED market performance. It is expected that the demand for LEDs in the first quarter of this year will not be as strong as that in December 2005.


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