Absen: Will not follow up on price increase

Since the beginning of this year, affected by the continued rise in prices of bulk commodities and core raw materials such as upstream copper, aluminum, and chips, the manufacturing end of the LED industry chain has faced greater pressure on gross profit margin contraction. In order to transfer cost risks and ensure healthy operating cash flow, since the beginning of the year, dozens of companies in the upstream and downstream of the LED industry chain have successively issued price adjustment notices. The scope of price increases covers multiple links such as chips, packaging, driver ICs, and downstream display units, forming a relatively common price increase in the industry this year.

However, in the context of the industry as a whole facing "cost push", the market has also emerged with different response strategies.

According to the latest knowledge of LEDinside, Absen has issued an internal notice to make it clear that the company will maintain the current selling price in principle at this stage and will not adjust the price for the time being.

According to Absen, the choice of "no price increase" against the trend is mainly based on its long-term business philosophy, showing customers that it has sufficient ability to hedge against fluctuations in raw material price increases relying on its mature supply chain integration capabilities, refined cost control and large-scale production advantages.

It can be seen that in the face of the cost push of upstream materials and bulk products, the internal strategies of the industry chain have become somewhat differentiated, reflecting the differences in the core demands of different companies in the current cycle. Companies that choose to increase prices aim to ensure supply chain security and reasonable profit margins to cope with pressure on the manufacturing side; while companies like Absen that choose not to increase prices tend to absorb costs through internal supply chain optimization or scale effects, aiming to stabilize their current market share and customer trust.

The above two strategies are business decisions made by enterprises based on their own supply chain control and market positioning. It remains to be seen what the subsequent industry price trends will be and whether more manufacturers will follow up with price adjustments. It remains to be seen how upstream material prices change and terminal demand recovers.