Leyard raised prices three times, and its subsidiaries followed suit
After Leyard issued two price increase notices on May 18 and 19, Leyard Channel Center issued a "Contact Letter" on June 27 stating that in view of the continued increase in the supply costs of upstream main raw materials, the production and manufacturing costs of LED display products continue to rise.
In order to ensure the company's long-term stable development, safeguard the fundamental interests of all employees and investors, and provide users with high-quality products and better services, Leyard Research has decided that starting from July 1, the prices of each model of products will increase by varying degrees. The specific increase will be based on the latest quotation.
Lead previously stated in its price increase letter in May that it would raise prices for conventional products and Micro LED products respectively. In this regard, Leyard explained: The reason for the price increase of the former is the increase in the price of upstream raw materials; while Micro LED has been launched for more than 2 years, and now the price has dropped a lot compared to the initial price, and the stability of performance indicators is better. Customer satisfaction is very high, and the supply is currently in short supply, so the price has been raised and the original calculated price of Micro LED has been restored. It is expected to increase by about 10% from the current price.
It is worth noting that Jinlixiang, a wholly-owned subsidiary of Leyard Group, also issued a communication letter on June 27, stating that it has decided to make moderate adjustments to the prices of all products starting from July 1. The specific adjustment range will vary according to different product types and specifications.
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BOE MLED product prices will be raised for the second time on July 1
BOE Jingxin also issued a price increase notice on the same day as Leyard. On June 27, BOE Jingxin issued a "Price Adjustment Notice", stating that in recent months, due to an upward trend in the prices of various raw materials, production costs have risen sharply. At the same time, related operating costs such as transportation and distribution have also continued to increase. BOE Jingxin has always focused on reducing costs and increasing efficiency, resolving cost pressure internally as much as possible, maintaining stable sales prices, and establishing a win-win cooperation model. In view of the severe situation in which various costs will continue to rise, after research and discussion, it has been decided to make appropriate adjustments to BOE MLED product prices starting from July 1. The specific adjustment range will be notified separately.
It is worth mentioning that this is the second time BOE Crystal Core has issued a price increase notice since it adjusted the price of LED direct display products on May 15. 3
Dongshan Precision will raise prices by 10-15% from now on
In this wave of price increases, companies have made multiple price adjustments. Dongshan Precision, which announced a 10% price increase on May 12, issued another "Contact Letter" on June 26. Regarding this price adjustment, Dongshan Precision stated that since 2022, the packaging industry has fallen into a quagmire of irrational low-price vicious competition. Long-term low-price competition completely deviates from normal market logic, causing upstream chip and midstream packaging plants to struggle. Improving the current situation of losses has become a common demand for everyone. Starting from May 2023, various product models of Dongshan Precision will have price increases to varying degrees.
After a long period of low-price and destocking production, the current inventory of various models has tended to be normal, but it is still in a state of severe cost inversion. In order to further improve the current situation, adhere to the concept of sustainable development, continue to promote the return of products to reasonable values, and promote the healthy development of the industry, Dongshan Precision has decided to make the following price adjustments from now on:
1. Increase the price of indoor products by 10-15%;
2. Increase the price of outdoor products by 10%;
As the market gradually recovers, terminal manufacturers’ inventories are gradually reduced. Out of optimism for the future market, many mainstream screen companies are continuing to stock up. Screen companies' increased stocking will inevitably lead to an increase in orders from midstream packaging manufacturers. However, the price of LED packaging products is at a low level, and packaging manufacturers are faced with the dilemma of "doing too much". In order to reduce the pressure, packaging manufacturers have to make price adjustments.
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ANNA