12.07.2015 Views

LEDs Magazine Review - Beriled

LEDs Magazine Review - Beriled

LEDs Magazine Review - Beriled

SHOW MORE
SHOW LESS
  • No tags were found...

You also want an ePaper? Increase the reach of your titles

YUMPU automatically turns print PDFs into web optimized ePapers that Google loves.

it would require a disproportionate increase in the number of squaremeters sold.It is possible that the loss of display sales to other technologies couldaffect the number of square meters sold significantly. In turn, thiscould then cause the sales growth of LED video displays to slow oreven perhaps decline.Any decline in sales for the full-color LED video industry couldalso have a noticeable impact on the smaller LED display manufacturersthat are barely surviving by limiting their ability to achievereasonable levels of economies of scale that a higher-volumebusiness produces.Smaller companies struggleCompanies that are not able to attain sufficient economies of scale willbe at a disadvantage in buying component <strong>LEDs</strong>, especially the highergrade <strong>LEDs</strong> that are necessary for high-quality video images. EDGhears complaints from some of its clients that it is not so easy for thembecause they are small or medium sized firms and do not have thebuying power of an industry leader like Daktronics.An equal concern of the majority of display manufacturers wouldbe their inability to fill a $50 million order in one year from a largecustomer such as an outdoor billboard company. This is a definiteproblem in that most of the companies are too small (75% ofmanufacturers have sales of less than $25 million per year) to reliablyfill orders of this magnitude. Advertising companies who are seriouslyLEDSMAGAZINEcommitted to the concept of advertising billboards, and have billionsof dollars in resources, will possibly bypass the display manufacturers,and make or assemble the displays themselves. Though the numberof square meters produced would not change, this would howeverreduce the total display sales in the market.With the display industry already on shaky financial footing, thesefactors could have a far-reaching impact on the industry, especiallywith many of the newer display manufacturers also producing LEDcomponents for both the large displays and for other applications.If the success of these companies are based too closely on bothdivisions working in harmony, then a downturn or financial loss inone could have an adverse effect on the other. This may then causea ripple effect in the component industry, which is already showingsigns of slow growth and extreme competition. Additionally, it islikely to affect the display manufacturing industry by having anunnecessary drain on the resources that are needed to compete ina global market.●About the authorPeter L Pihos Jr is a partner in EDG Research and Consulting(www.edguide.com), a firm specializing in the field of large-areadisplays since 1982. He was the publisher and editor ofElectronic Display News magazine. Prior to starting EDG, Pihoswas an intelligence analyst with the National Security Agency(NSA) specializing in telemetry and radar systems.<strong>LEDs</strong><strong>Magazine</strong>.comDedicated coverage of the applications ofhigh-brightness <strong>LEDs</strong> and the technologyof building LED-based systems<strong>LEDs</strong> <strong>Magazine</strong> is pleased to acknowledge the support of the following Featured Companies on its website:OSRAM OptoSemiconductors GmbHOPTEK Technology NYE Lubricants MelexisInstrument SystemsGmbHCree Inc Enfis Ltd NuSil Technology LLC Labsphere IncSeoul SemiconductorCo LtdFor information on becoming a Featured Company, or other advertising opportunities, please contact Joanna Hook:Tel: +44 (0)117 930 1028 joanna.hook@iop.orgledsmagazine.com August 2006© Copyright 2006 IOP Publishing Ltd www.iop.org and Cabot Media Ltd. All rights reserved31

Hooray! Your file is uploaded and ready to be published.

Saved successfully!

Ooh no, something went wrong!