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.
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In 2012, the price of LED display continued to decline, with a drop 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 LED manufacturers that have regressed revenues may 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 profit growth of LED electronic display will mainly come from traditional inkjet, neon, billboard replacement market, as well as high-definition, high-definition LED electronic display market such as HD, 3D and intelligent. 