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Customers’ Reverse Guidance for Downstream LED Area Light

The second reason for lost in technology direction: the reverse guidance in downstream.

Customers can decide the resources allocation of companies. Since enterprises need to maintain profit from led area light products and at the same time invest limited resources to products with more yields, so the customers buying these products are making invisible allocations for resources in the company.

The downstream lighting manufacturers can decide the production investment and technology direction of encapsulation factories. The most products made by LED Lighting factories are to replace traditional lamp s, therefore the cost performance of LED Lights are always compared with that of traditional lamps. The almost one hundred year development of traditional lamps from glass making to metal processing has reached optimization of technology, and it leads to a relatively stable price. The popularization of LED lamps takes less than a decade, therefore the partly inefficient technological industrialization has led to higher cost. In the competition with traditional lamps, lighting factories would make requirements for LED light fixture on the encapsulation aspects: light efficiency, color quality, conductivity and price. 

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Source: http://www.elitesemicon.com/newsone.asp?t1=976