The cost are getting out of hand. This is the key question for most of LED factory in LED market. And most of people will go with cheaper LEDs for the cost reduction.
I understand the if you manufacture lighting, you're under constant pressure to cut costs. Competition customers keep asking for lower price. At the same time, the raw material costs keep climbing and margins are shrinking by the day. So it's only natural to look at the biggest line item on your BOM list and think, "what if we went with something cheaper?"
We been working on SMD LED and DIP LED market for more than 20 years. And I've seen that approach go wrong more often than it goes right.
A few cents saved per LED turns into skyrocketing failure rates, non-stop complaints and brand reputation that takes years to rebuild.
No matter UV LED, Amber LED, white LED or IR LED. Cost reduction is a good thing as long as you're not just swapping in cheaper parts and calling a day.
What real cost reduction for SMD LED and DIP LED(2835 SMD LED or 5mm LED) looks like:
The ultimate goal of cost reduction is not to minimize the price of individual single parts, but to lower the total cost of ownership, which include the procurement costs, production cost, after-sales costs and brand loss costs.