LED lighting: an accelerated learning curve?

News from Samsung (exiting the LED market) and Philips (spinning off their LED division) would seem to indicate rapid learning in the LED space. From Reuters:

Analysts say Samsung Electronics’ retreat reflects the growing competition from Chinese manufacturers even as demand for LED lighting remains strong. LED lamps last 10 times longer than fluorescent bulbs and 100 times longer than traditional incandescent tungsten filament bulbs.

“It appears that Samsung decided to fold the business because price competition was so fierce and there was not a lot of room for growth going forward,” said Seoul-based IM Investment analyst Lee Min-hee.

Philips said in September that it will spin off its lighting business to expand its higher-margin healthcare and consumer divisions. Two month earlier, Germany’s Osram Licht AG , which also makes LED lights, announced a cost-cutting plan that included nearly 8,000 job cuts.

Jason Snell put it best:

So, bad news for Samsung and other businesses betting on big margins for bulbs, but good news for everyone else.

Tags: energy, environment, environmental health, power, technology

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