led bulb wars: cree vs. wal-mart

by:ILED     2020-03-21
There is no doubt that the price war on LED bulbs warmed up in 2013. Wal-Mart (NYSE:WMT)
Recently announced that they will sell the new LED bulb series at the most competitive price in the market, $8.
88 of 60 watts (uses 11 watts)and $8.
48 of 40 watts (uses 6 watts).
I went to the local Walmart.
Buy one and look at these bulbs and Cree (NASDAQ:CREE)
The LED bulb I bought at Home Depot (NYSE:HD)
Exclusive place of sale for Cree bulbs. Wal-Mart box
When the Matt bulb came in, it didn\'t say who the manufacturer of the bulb was, but it was made in China.
It does say it has a 3-year warranty.
The bulb assembled by Corey in the United StatesS. A.
And a 10 year warranty.
Both bulbs are claimed to last 25,000 hours or 22 hours.
Based on the use of 3 hours a day, 8 years.
Other major differences are as follows: after purchasing the bulb from Wal-Mart
Matt, I can see and feel the quality of the product.
The bulb has a plastic head.
The bulb head of Cree is made of glass and it is coated with some sort of transparent polymer for safety.
The feeling of the bulb is significantly different, which gives the sharp bulb greater durability and quality.
However, in my judgment of the amount of 40 watts and 60 watts, the quality of light is almost the same.
The most amazing thing for me is the 40 W bulb sold at Walmart
Mart uses the same energy as Cree\'s 40 watts of 6 watts.
The light flow from the bulb is even a little more than that of Corey, which told me that the technology has been commercialized and that Corey\'s technology has nothing special about the market compared to other products.
When Cree launched the equivalent bulb of 40 W and 60 W, it started again, CEO Chuck Swoboda said: cree\'s introduction gives me a personal reason to start switching to a Cree LED bulb and keep an eye on inventory.
Since August, shares have risen from 40 to 70, up from 20 a year ago. (
Click zoom in)
What should Kerry focus on? look at Wal-Mart now.
Mart will give consumers a reason to switch, thus taking a large chunk of LED bulbs to sell pies in the coming months and years.
My judgment is that they will do that because they can beat them on price and meet Cree on energy efficiency, just like they use the 40 watts of 6 watts, just
From a competitive point of view, Corey is not just selling LED bulbs for homes and businesses.
In the fourth quarter ended June 30, Cree had total sales of $0. 375 billion, of which $133.
64 million belongs to the category \"lighting products.
\"Sales of LED bulbs are lower than lighting products.
Sales of the bulb itself did not break out.
As a result, about 35% of Cree\'s total sales fall into the category where these LED bulbs are undersold.
The bottom line is that the strong sales growth of Corey LED bulbs may not be as strong as analysts and investors once thought.
Now there are Matt\'s bulbs on the market.
Anyway, I believe that once society looks at the economic side of the bulb itself, there is a huge market for LED bulbs.
The winners of these lightbulb wars are ultimately consumers and the society itself, and we will all save power and light bulbs for the rest of our lives.
I still stay on the sidelines with Cree and wait to be a better entry point for Cree stock buyers.
My bias is that in order to reflect the greater competition that has hit the market, the growth of LED bulb sales in Cree may need to be reduced by one notch.
Disclosure: I do not have a position in any of the stocks mentioned, nor do I have a plan to start any position in the next 72 hours.
This article was written by myself and expressed my views.
I received no compensation (
In addition to Seeking Alpha).
I have no business relationship with any stock company mentioned in this article.
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