According to the National Semiconductor Lighting Engineering Research and Development and Industry Alliance (CSAResearch) The research results show that from the perspective of relevant price indexes, 2013 1- On July, according to the Zhongshan Guzhen Lighting wholesale price index, the wholesale price of LED lamps fell by 21. 72. [img] /uploads/allimg/131111/104144 D91-0. jpg [/img] In fact, since 2012, the price of LED lamps has continued to drop in shock, with a drop of more than 1/3 in 18 months. According to the price trend of various brands collected by CSA from Taobao and other network terminals, the average unit power cost of LED incandescent lamps in the past 5 months has increased from 12. 08 yuan/w dropped to 6. 93 yuan/w, a drop of 43. The main sources of price decline are two driving factors: On the one hand, technology continues to drive LED production costs, making price decline a power source. At present, mainstream LED bulbs use more medium-power chips. Medium-power chips have less heat dissipation than low-power chips, and the price is lower than that of high-power chips. On the other hand, the fierce competition in the market makes price war an important means of competition for enterprises. In addition, in order to meet the market demand, enterprises have targeted the introduction of some new LED bulb products with shortened service life (Originally 2-30 thousand hours, now less than 1. 50 thousand hours), Also reduce production costs. On the one hand, the price war is conducive to reducing the price difference between LED lamps and incandescent lamps and CFL, and accelerating the penetration of the terminal market. The price ratio between LED lamps and energy-saving lamps has been reduced to 1. 8 times. Judging from the average price of 40w incandescent lamps, the average price of LED bulb lamps with the same luminous effect in August was 15. 7 yuan, while CFL price is about 10 yuan. The price drop has made LED lighting products more competitive in the market than other products such as energy-saving lamps, and the market turning point may appear. On the other hand, the price war will accelerate the industry integration and the survival of the fittest, forcing enterprises to reduce costs, strengthen management, optimize resources, integrate supply chains, enhance their own competitiveness to meet the market outbreak. but at the same time, it poses a challenge to domestic, especially small and medium-sized enterprises, to establish brands, accelerate transformation, and transform into value chains. At the same time, the industry also needs to prevent vicious price competition and sacrifice product price quality for price.