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NEWS ANALYSIS<br />

Lower cost LED lighting<br />

Will Cree’s $10 LED light bulb end America’s<br />

century-l<strong>on</strong>g incandescent love affair asks<br />

Compound Semic<strong>on</strong>ductor.<br />

as inDUstrY antiCiPatEs an lED<br />

market upturn, Cree has just unveiled a<br />

new line of lower-priced, incandescent<br />

look-alike bulbs that could speed the<br />

recovery. Costing from $10, coming<br />

with a ten year guarantee and offering<br />

a similar light output to the much-loved<br />

incandescent − but rated to 25,000,<br />

not 1000 hours − the bulbs have been<br />

developed specifically to kick-start<br />

sluggish domestic lighting markets<br />

across the Us.<br />

as Cree’s vice president of corporate<br />

marketing, mike Wats<strong>on</strong>, told Compound<br />

Semic<strong>on</strong>ductor: “We didn’t think this<br />

segment was moving fast enough so<br />

we’re giving c<strong>on</strong>sumers a reas<strong>on</strong> to<br />

switch to lED lighting. they love the<br />

shape and the light that comes out of the<br />

incandescent so we’ve given them a bulb<br />

that they are used to, at a price point they<br />

will try.”<br />

and the feedback is good. Described in<br />

the MIT Technology Review as “the lED<br />

bulb Edis<strong>on</strong> would love” and reported<br />

by many to “look like and light like” an<br />

incandescent, this is a bulb that the<br />

likes of Philips lighting and GE will find<br />

difficult to ignore. the new line of lED<br />

bulbs includes three models; a warm<br />

white 60 W-equivalent 9.5 W bulb priced<br />

at $ 12.97, a daylight 60 W-equivalent,<br />

9 W bulb at $ 13.97, and a warm white<br />

40 W-equivalent, 6 W bulb at $ 9.97.<br />

Each has a colour rendering index of at<br />

least 80 with both warm white versi<strong>on</strong>s<br />

emitting a 2700K pleasant warm light and<br />

the daylight bulb a cooler-looking 5000K<br />

light.<br />

meanwhile, the Philips lighting 60<br />

W-equivalent incandescent copy cat,<br />

delivers a cooler 3000K at 10 W for<br />

$14.97, while the GE lighting equivalent<br />

rings in at around $ 45. all bulbs promise<br />

a lifetime of around 25,000 hours, a<br />

l<strong>on</strong>g-term guarantee, but <strong>on</strong>ly the Cree<br />

bulb hits that magic $10 figure. so how<br />

does the lED heavyweight do it? a 40 W<br />

bulb comprises ten of Cree’s phosphorc<strong>on</strong>verted<br />

high voltage Xlamp Xt-E lEDs<br />

with the 60 W versi<strong>on</strong> c<strong>on</strong>taining twenty<br />

of the same. Phosphor is applied directly<br />

in the lED package to produce white<br />

light. Pairs of lEDs are mounted around<br />

the lamp’s heatsink with Cree calling<br />

the entire vertical structure the Filament<br />

tower.<br />

“the lEDs are arranged in a parallel<br />

c<strong>on</strong>figurati<strong>on</strong> to get as close as possible<br />

to the line voltage of the power supply,”<br />

says Wats<strong>on</strong>. “We can reduce the<br />

comp<strong>on</strong>ent count <strong>on</strong> the driver, making<br />

it simpler and lighter, and we need less<br />

metal, helping us to replicate the look of<br />

an incandescent bulb.”<br />

indeed, Wats<strong>on</strong> is keen to emphasise<br />

the simplicity of its latest bulb. “We’ve<br />

designed this 100 percent, and sourced<br />

the necessary comp<strong>on</strong>ents,” he says.<br />

“take it apart and you’ll see how<br />

simple and elegant it really is. We<br />

needed something that could fit into<br />

this form factor and give you the look<br />

of incandescent light, at a low enough<br />

cost.”<br />

Wats<strong>on</strong> asserts ‘entire system’<br />

breakthroughs − from the lED and power<br />

supply to optics and design − have<br />

been crucial to cutting costs but also<br />

attributes the $10 figure to the company’s<br />

structure. “We’re vertically integrated and<br />

can adjust many variables at the same<br />

time and better than if we were using the<br />

traditi<strong>on</strong>al supply chain,” he says. Vertical<br />

integrati<strong>on</strong> or not, many industry sources<br />

believe Cree is <strong>on</strong>to something. Pars<br />

mukish, analyst at Yole Développement,<br />

believes the bulb will serve its purpose<br />

and trigger greater c<strong>on</strong>sumer adopti<strong>on</strong> in<br />

the Us domestic lighting market.<br />

“today’s main issue with lED lighting<br />

for residential applicati<strong>on</strong>s is the upfr<strong>on</strong>t<br />

cost,” he says. “the incandescent<br />

costs less than a dollar, the compact<br />

fluorescent lamp costs between $3 and<br />

$5 while the lED lamp, before this, was<br />

between $15 and $40, depending <strong>on</strong><br />

geography and rebates offered.“<br />

But of course the Cree bulb changes this.<br />

and as mukish adds: “ in the previous<br />

era of lEDs, it was all about increasing<br />

Cree’s ‘Filament<br />

Tower’ mimics<br />

the filament of<br />

an incandescent<br />

light bulb<br />

the lumen per watt. now it is all about<br />

increasing the lumen per dollar... we<br />

think [Cree has] a good strategy as the<br />

potential volume triggered by residential<br />

lighting will be a virtuous circle for the<br />

company to c<strong>on</strong>tinue decreasing costs.”<br />

indeed, questi<strong>on</strong> Wats<strong>on</strong> whether<br />

the bulb could match the efficiency<br />

and quality of past winners of the<br />

Us Department of Energy’s l Prize<br />

competiti<strong>on</strong> and he bluntly says: “the<br />

l prize is fun, and industry rewards are<br />

fun, but the prize that Cree wants is<br />

c<strong>on</strong>sumer adopti<strong>on</strong>.”<br />

“the bulb is designed to meet Energy<br />

star requirements but has also been<br />

designed to be affordable with or without<br />

that. it can pay for itself in about a year...<br />

so without any rebate or government<br />

regulati<strong>on</strong> we have made the maths<br />

work,” he adds. “anything else we do<br />

<strong>on</strong> that [the efficiency] side will now just<br />

make this even sweeter.”<br />

so while the bulb is currently available<br />

in home Depot stores across the Us,<br />

what about the rest of the world? it<br />

will have to wait. Wats<strong>on</strong> believes the<br />

greatest demand currently lies in the Us,<br />

adding:“Europe uses a lot of recessed<br />

track lighting whereas the Us market<br />

already has a very large installed base of<br />

a lamps.”<br />

still Cree’s Us focus looks to be working;<br />

the release of the products saw Cree’s<br />

shares rise 13 percent to the highest level<br />

in two years. We have yet to see if Us<br />

c<strong>on</strong>sumers will snap up a $10 lED lamp,<br />

but at the very least, Cree has brought<br />

affordable lED lighting closer to home.<br />

© 2013 angel Business Communicati<strong>on</strong>s.<br />

Permissi<strong>on</strong> required.<br />

20 www.compoundsemic<strong>on</strong>ductor.net April/May 2013

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