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In 2012, the price of LED display continued to decline, with a decrease of 15-20 in 2011. The reason is that large manufacturers with strength hope to eliminate some small and medium-sized manufacturers through price wars. The decline in prices further narrowed the gross margin. According to industry insiders, the gross profit margin of LED-based electronic display manufacturers, which are mainly channel-based, has dropped to 10-15, and the gross profit margin of engineering channels is still above 20. The industry said that in 2013, LED display will continue to develop and the market scale will grow steadily.
Market size is growing steadily
From the current competition level of the domestic LED electronic display industry, it is still in the early stage of product competition. The key indicators of competition are reflected in: price, quality, delivery period, after-sales service, etc. The price elements are particularly prominent at this stage. In 2012, the price of LED display continued to decline, with a decrease of 15-20 compared with last year. The underlying reason for the continued decline in LED display prices is that large manufacturers with strength hope to eliminate some small and medium-sized manufacturers through price wars. The price war has greatly affected the revenue performance of LED electronic display manufacturers, and the revenue will be reversed by LED manufacturers or reach more than 30.
Prices are falling, further reducing the gross margin. At present, the gross profit margin of LED-based electronic display manufacturers, which are mainly channel-based, has dropped to 10-15, and the gross profit margin of engineering channels is still above 20. The profitability of LED electronic display manufacturers is still weakening.
The LED electronic display industry has entered the integration period, and some small and medium-sized enterprises will gradually be eliminated in the next few years. In the integration stage, LED electronic display manufacturers with technical strength and capital strength are expected to take advantage of the strength of the capital market and the company's own technology and channel advantages to achieve rapid development. In the next 2-3 years, the industrial concentration of LED electronic display will increase rapidly.
As the LED electronic display industry has entered a mature stage, the LED electronic display market will maintain a steady growth. The High-Tech LED Industry Research Institute (GLII) expects that the LED electronic display market will grow at 10-20 in the next few years. Future LED electronic display profit growth will mainly come from traditional inkjet, neon, billboard replacement market, as well as high-definition, high-definition led electronic display market such as high-definition, 3D, and intelligent.
LED display market future development
At present, although the competition of LED electronic display in mainland China is fierce, it is still in the early stage. The key indicators of competition are reflected in price, quality, delivery period and after-sales service. The price elements are particularly prominent at this stage.
The LED electronic display industry has entered the integration period, and some small and medium-sized enterprises will gradually be eliminated in the next few years. In the integration stage, LED electronic display manufacturers with technical strength and capital strength are expected to take advantage of the strength of the capital market and the company's own technology and channel advantages to achieve rapid development. In the next 2-3 years, the industrial concentration of LED electronic display will increase rapidly.
As the LED electronic display industry has entered a mature stage, its market size will maintain a steady growth. Some insiders expect that the scale of LED electronic display market will remain at 10-20 in the next few years. Future LED electronic display profit growth will mainly come from traditional inkjet, neon, billboard replacement market, as well as high-definition, high-definition led electronic display market such as high-definition, 3D, and intelligent.
Extension: four stages of the development of LED electronic display
LED electronic display screens were introduced abroad in 1997, and then began to sprout in China. They have experienced four stages of development from monochrome, double primary color, full color and true color. The specific description of each stage is as follows:
The first generation: monochrome LED electronic display. Based on a single red color, the display text and simple patterns are mainly used for notification, announcement and passenger flow guidance systems.
The second generation: dual primary color multi-gray display. Red and yellow-green are the basic colors. Because there is no blue color, it can only be called pseudo-color. It can display multi-gray images and videos. It is widely used in telecommunications, banking, taxation, hospitals, government agencies, etc. Display slogans, public service advertisements and image promotion information.
Third generation: full color multi-gray display. With red, blue and yellow-green as the base color, it can display more realistic images. In 2008, it was the most popular. It used a wide range of stage backgrounds, conference rooms, bulletin boards and so on.
The fourth generation: true color multi-gray display. With red, blue and pure green as the base color, you can truly reproduce all the colors of nature (in color coordinates even beyond the natural color range). Can display a variety of video images and color advertising, its gorgeous color, bright high brightness, delicate contrast, in the field of advertising and advertising has excellent visual impact.
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