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Company news about Cost reduction: LED all-in-one machines enter a new stage of development

Cost reduction: LED all-in-one machines enter a new stage of development


Latest company news about Cost reduction: LED all-in-one machines enter a new stage of development

2023 will be a "leap" moment for the LED intelligent all-in-one machine market from a thousand units to a market capacity of ten thousand units - this is the industry's "expectation" for the small pitch LED all-in-one machine market. The background of this vision is that LED display products have set a historic "new low price".
Low prices drive the expansion of product applications
According to data from Lotu Technology, the average price of small pitch LED displays in China has dropped from 44200 yuan per square meter in the first quarter of 2020 to a low of 14200 yuan in the first quarter of 2023. Although there was a wave of price increases in the small pitch LED industry from May to August, the average market price remained at 16000 yuan, lower than the average price level at the end of 2022.

The continuous price decline is a favorable driving force for the development of the LED industry. Especially for new products such as all-in-one machines, where 1. pixel spacing standards are high, technical costs are high, 2. overall service requirements are high, and market expansion costs are high, cost and price reductions are key development milestones.
From a global market perspective, small pitch LED all-in-one machines have two characteristics: firstly, they solve the problem of poor visual clarity in traditional projection displays such as large screen brightness and contrast; At the same time, it also solves the problem of the inability to continuously increase the size of flat panel display products such as LCD. Secondly, small pitch LED all-in-one machines are almost the "most expensive" display products.

Different market logic for commercial, household, and LED all-in-one machines
If price and cost are very sensitive to the impact on the commercial market, then for another major LED all-in-one machine market - household use, price may not be a "big issue".
At present, high priced products such as LG and Samsung are more focused on the home market, especially the ultra high-end home TV market. Its products focus on the concept of next-generation technology and larger application sizes. The domestic LED all-in-one home market in China started earlier than international brands, and the market practice is also more mature. This is mainly reflected in the fact that Chinese enterprises focus more on the size positioning of "larger than LCD" in the household market. This is somewhat different from Samsung and LG's "bridging LCD, or even competing with LCD in the same size".
However, regardless of whether the size starting point is 100 inches or 130+inches, the LED all-in-one home market is exclusive to "big houses". A comfortable viewing distance of over 5 meters has already limited the "consumer group" before the price—— Focusing only on the ultra high-end is the main feature of household LED all-in-one machines. This also determines that price is not a problem, and the improvement of product quality, experience, service network, brand attractiveness, and market awareness are the core competitive dimensions of the household LED all-in-one machine market.
So, what the household LED all-in-one machine market needs for the first time is "industry momentum", forming a cognitive effect of high-end consumer groups: just like recognizing LV, recognizing LED all-in-one machines in the high-end color TV industry. This requires more franchises from major brands, as well as the operation and accumulation of time. Both of these aspects are ushering in more development and variables in 2023.
In contrast, although LED all-in-one machines are positioned as "big conference rooms" in conference rooms, defined as "big classrooms" in classrooms, and also positioned as "big screens" in other commercial displays - commercial LED all-in-one machines are not meant to be all demand take-all, but in scenarios where large screen applications are needed, they also include the market value of "popularizing applications in large spaces". From this perspective, the future of LED all-in-one machines is likely to be a "special category" with commercial value and scale far greater than household value and market size.
And any product that contains the value of popularizing concepts is bound to have a "cost sensitivity" - in addition to cost sensitivity, as a demonstration application for teaching, conferences, and other purposes, its demand for resolution is not as high as the "high-end audio-visual entertainment" in the household market: this is also why 1K resolution commercial LED all-in-one machines still have a place in the market. A 1K resolution TV only exists on the smallest 32 inch product line.
The popularization value must correspond to the demand for price cost power. Therefore, the demand for LED all-in-one machines in the commercial market is eager to accelerate the start-up against the backdrop of a decline in the overall average price of the industry. Especially with the increasingly fierce competition and price decline of P1.2 products analyzed in the previous section, it is likely to become a booster for the commercial market of LED all-in-one machines to increase production.
Overall, the LED integrated machine industry has entered a new stage in terms of technology, cost, brand lineup, market awareness, and influence in 2023. This provides a foundation for breakthroughs in the consumer end of LED all-in-one machines


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