Date:29th Nov 2011
Less demand for Lithium batteries results
in ASP drop
According to EnergyTrend, a research division of TrendForce,
the ASP of 2.2Ah lithium cylindrical battery cell dropped
to US$ 0.65 in November, representing a 7% decrease, while
the ASP of 2.8Ah plunged to US$ 0.75. In addition, the ASPs
of 2.3Ah and 3.2Ah lithium polymer battery cells dipped
to US$ 1.48 and US$ 1.75, respectively, showing a less drastic
drop. The lithium polymer battery, one of the more popular
batteries in the market, is mainly adopted in tablet PCs.
The other findings shared by EnergyTrend includes:
As a result of Europe's chaotic financial order, the consumers'
purchasing intention has been low. Moreover, the exclusivity
of the tablet and notebook markets and the consumers' preference
for low-price products has become more and more prominent.
For this reason, the manufacturers have even revised the
4Q11 sales target for their high-price mainstream products
and remain conservative about the outlook in 2012. The industry's
overly optimistic forecast on the market prospects in 3Q11
resulted in the high inventory level of batteries in 4Q11,
and the sales of end-market products have been receiving
increasing interest. Due to tablets' higher popularity in
the market, notebook batteries' inventory level is higher
than that of tablet batteries.
The low-price products' high popularity compromises the
shipment of high-end battery products, including the high-capacity
battery, not to mention that the low-price products' sales
also fall short of expectations. The weak demand has caused
the battery price in November to drop to the same level
of 1Q11; the standard 2.2Ah battery price dipped to US$1.41,
a relatively low price.
According to EnergyTrend, major battery makers, such as
Japanese company Sanyo and South Korean companies SDI and
LGC, are planning to downsize their production in order
to stabilize the battery prices, and the total reduction
is expected to reach 10%. EnergyTrend expects the production
cut to stabilize the lithium battery prices in 1Q12. However,
the capacity of the lithium polymer battery is on an uptrend,
which will become a noteworthy issue in 2012.