In 2014, when asked about the company's performance this year, there will always be two voices, two answers. The first is that this year is sad, orders are cut; the second is steady growth, but the performance improvement is not large, and the industry is currently fiercely competitive, in the stage of big fish eating small fish and small fish to eat shrimp. This year is coming to an end. The 2014 transcript has been fixed. Some people are happy, and many companies have entered the inventory stage. Then, on the occasion of 2015, the year-end inventory of the overall situation of the LED industry in 2014 and the development of the upper, middle and lower reaches will be carried out.

The road is tortuous, the future is bright <br> <br> about 2014 LED lighting industry, many industry experts and manufacturers agree that this is the first year of the outbreak of the LED, in fact the beginning of a market recovery prosperous state does occur, According to the company, the smiles are welcoming people, and the orders are lined up; but the peaks and turns, the LED industry is like the weather, the weather turns sunny, and the company is asking "Where is the order?" Therefore, the LED industry has passed the positive and negative energy through 2014.

Li Naiying, chairman and chief engineer of Zhuhai Pujing Lighting, believes that this year's economic environment is not only difficult for the LED industry, but also for all walks of life. It is very good that the company can survive this year. In October 2014, the blue LEDs invented by three scientists from Japan’s Akasaka, Amano and Nakamura were awarded the 2014 Nobel Prize in Physics. This news is undoubtedly a tonic for the warriors who struggle on the LED industry. Exciting, the full screen in the WeChat circle of friends is the industry's view of this event, full of positive energy, and said that LED is a sunrise industry, but before the daylight has not shined, the darkness before dawn is always difficult. ,Cruel.

Mergers, runways, price wars, quality gates, etc. formed the overall development climate of the LED industry in 2014. The amount of running roads is getting bigger and bigger, the price is getting no bottom line, and the frequent quality problems of lamps are worrying, even though The bad feelings brought about by these negative energies cannot be denied that the 2014 LED industry is doing nothing.

Overall, the LED lighting market was in a period of rapid growth in 2014. Although the growth rate in the second half of the year slowed down compared with the first half of the year, with the progress of the elimination of incandescent lamps and the progress of urbanization, the more consumers pursue the quality of life. The higher the value, the green energy conservation is deeply rooted in the hearts of the people, the promotion and popularization of LED lighting products are gradually deepening, and the commercial lighting market and the home market are still maintaining a high growth rate this year. The comprehensive replacement tide also promotes the continuous blowout of the LED lighting market.

Upstream: price war is turning into a technology war <br> <br> present the entire chip industry's gross margin is very low, and now they would go sapphire prices, so the chip is not much room for price cuts. At the same time, the cost-effectiveness of domestic chips has replaced many imported chips. The reporter learned that many manufacturers have used imported chips such as Cree and Samsung in the past. Now 80% of the manufacturers do not specify to import, and they start to use some of the leading domestic chip manufacturers. In addition, the domestic chip shipments are very fast, and the upstream sapphire is beginning to be in short supply. The shortage is caused by two points: First, the overcapacity of sapphire in the previous two years, the price fell from more than 30 US dollars to 6 US dollars, many of the existing production capacity, and the planned production capacity in the industry boom have withdrawn. Second, there is a capacity to start making non-substrate products. According to the survey results, sapphire is currently in a state of rising volume and price. The price of 2-inch film has risen from 6 US dollars to 7.5 US dollars, and will rise further in the future.

The technology of domestic chips has not yet entered a stable state, and there is still room for improvement in 2-3 years. After the merger, integration and expansion of major companies in 2013, domestic chip companies have already had large-scale production capacity, and patent issues have begun to appear. Companies have reinforced their technology research and development, established patent pools and other methods to circumvent patents. Risk, which means that the technology of domestic chip companies has reached a certain height.

Midstream: downstream packaging factory by extrusion, into a chip being currently puffs <br> <br> gradual transition from 2 inches to 4 inches, 6 inches when done when the cost of the chip is already quite low, so the upstream Enterprises are forced to make technological breakthroughs. When technological breakthroughs reach bottlenecks, they begin to compress the industrial chain. As a result, the chip has evolved from the current dress to the vertical and flip chip. Under the dual power of technological breakthrough and compression industry chain, the upstream began to squeeze into the package. Some chip manufacturers even directly implemented the lamps, but the upstream capital The investment is now more than 10 times, the technical threshold is also high, it is basically impossible, probably to do the lighting downstream, and the downstream manufacturers are also beginning to do packaging, such as Mulinsen, do their own packaging, and then do the product, the quality is guaranteed and cost-effective At this time, the package can only go upstream or go downstream, so the packaging factory is a sandwich-like state, which is squeezed by the upstream and downstream.

In addition, some packaging factories have begun to work together to reduce the pressure of being squeezed through scale. The capacity of the former packaging companies is not large, and now 500kk or more is normal, some have reached 1000kk, and the production capacity is close to full, which is the performance of the market area concentration and scale.

Downstream: traditional photo enterprise transformation LED

In the context of the rapid start of indoor lighting, the number of traditional lighting to LED lighting has reached its peak, and with the original LED companies, the total number of enterprises will reach 15,000. In the original traditional lighting market, there are 10,000 enterprises in China. LED lighting is a replacement demand, and the market space is fixed. The extra 5,000 companies must be integrated. Therefore, since 2014, industry consolidation has begun to increase and market competition will be very intense.

Traditional lighting companies that have switched to the LED lighting market have great advantages in channel resources, but most LED companies will choose to OEM or ODM for domestic and foreign manufacturers because of the high capital cost of creating channels; Large-scale search for companies with channels and scale advantages to integrate or form strategic alliances. Therefore, reducing the price of products, actively seeking bidding projects, vigorously building and transforming road lighting, promoting intelligent lighting and enhancing brand image are the main development strategies of LED lighting manufacturers in 2014.

In addition, smart lighting and e-commerce channels are two of the industry's most indispensable hot words this year. The first is intelligent lighting. In this year's professional lighting exhibition, it is almost half of the country. There are also manufacturers that develop and produce intelligent lighting systems and finished products, such as Philips and Xiaomi, which have launched intelligent lighting products. The O2O model in the e-commerce channel has been repeatedly talked about by the industry in many forums and exchange salons this year. However, most of the manufacturers are based on traditional channels, and the e-commerce channel is just one. The platform for displaying the brand image, some manufacturers believe that the construction of e-commerce channels is an inevitable trend, but it still needs a transitional stage in terms of current industry development, not mature.

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