The average selling prices (ASPs) of LEDs utilized in handset backlight applications have dropped by 10-15% since this January, according to Epistar.

With the improvements of light efficiency and brightness, ASPs of LED products decline about 20%-30% per year, but ASPs remained strong since the third quarter of 2007 due to surging growth in demand for small- to- medium panel backlighting and supply running tight, according to LED makers. However, LED chip makers have faced price reductions since the first quarter of 2008 due to the slow season approaching and customers' inventory policy affecting the number of new orders.

Some customers have requested a 10% price reduction in ASPs of handset-use LED applications and the ASPs may decline further in March due to increased orders and shipments, according to LED packaging makers. However, the ASPs are expected to rebound in the third quarter due to growing demand for small-to-medium panel backlighting applications, they added