Email: sales@kaiyeled.com
 
Home Products list About us News Service&Support Contact Us Sitemap
 
  Product Categories
  Enterprise dynamic
  Industry information
  Contact Us

Web: www.kaiyeled.com
Tel: +86-18180218808
Skype: xiexiee
Email: sales@kaiyeled.com

  Video

  LOCATION:China Kaiye Lighting Limited > News > Enterprise dynamic
 
Cree Adds New LED Arrays To Its Portfolio
views count:4180 Date:2015-03-09 15:57:54 Author:SystemMaster

Cree added a new chip-on-board LED to its industry leading CXA LED array family. The CXA2 LED arrays utilizes elements of Cree’s SC5 technology platform (introduced last quarter), which enables lighting designers to drastically lower system costs (by up to 60%) in the next generation of industry-leading lighting products. With the new CXA2 LED arrays, lighting manufacturers can achieve the same or better performance with a smaller LED compared to earlier products, enabling them to rapidly deliver more innovative solutions for applications such as track, downlight and outdoor lighting.

Cree is a market-leading innovator of lighting-class LEDs and LED lighting. Lower LED demand and margin pressure are two keys trends which have impacted Cree’s growth prospects in the last few quarters. However, the company continues to see strong growth in its lighting segment, and it does not foresee any change in the trend as the segment still remains a largely untapped opportunity.

The LED lighting market is expected to grow 45% per year through 2019, driven by declining price points and rising interest on the part of the channel in pushing LEDs to consumers. LED lighting is expected to account for 80% of the entire lighting market by 2020, creating a market that will be as big as $94 billion.

Cree is confident that it is well positioned to continue to win in LED lighting. The company has a fully integrated vertical business model and is the market leader in both LEDs and LED lighting products. Product innovation over the last few years has opened new applications and improved LED returns, in turn driving demand for Cree’s products. Though the company has made significant progress, growing both the volume and product base of its lighting business over the last several years, it believes that there is still a lot of untapped potential in terms of both revenue and profitability. It has a strong product pipeline and is building good sales momentum for the same.


Though the LED landscape remains highly competitive, Cree believes that its high power LED technology positions the company for long term success in high performance LED lighting applications. The company closed its Lextar investment in Q2 2015 and is working with the team to supply LED chips as well as testing some initial lighting products. The collaboration with Lextar can help Cree expand its presence in the mid-power segment. Though the company is optimistic about its long-term prospects in the LED lighting segment, it admits that it will take time to work through the new products design cycles and current market conditions.

Rising Competition From Bigger Players Can Limit Growth Potential

Osram, Philips and GE are some of Cree’s key competitors in the LED market. In terms of revenue, all these players are considerably larger than Cree. Philips and GE have been introducing a number of innovative products into the market at very low prices, although Cree bulbs are still one the cheapest available in the market. The sheer size of GE can help the company achieve economies of scale if it chooses to create LEDs on a vast scale in the future. GE sells its LED bulbs through Wal-Mart, which has a huge network of 11,000 stores spread across 27 countries. In comparison, Cree’s retail partner Home Depot has around 2,300 stores.

The rising competition can limit Cree’s long-term growth potential, and the company clearly needs to focus on innovation in order to capture the growing market. We expect CREE to continue growing, but project the growth rate to slow down over our review period. Cree is part of an industry that is still at a nascent stage of growth and a continuous focus on bringing new low-cost and more efficient product in the market can help it expand its revenue base in the future.

Previous:Samsung upgrading LED display collection with Yesco Electronics buy
next:City officials brighten to idea of LED streetlights
LINK
About us News Products list Link Contact Us Sitemap Video
All rights reserved Copyright (C) 2015 Kaiyeled.com  Kaiye Lighting Limited
Tech support:ODENET