Opto-Tech Raises Prices
Opto-Tech, (2340.TT) formerly one of Taiwan’s leading LED producers, has changed a bit over the last few years with a shift from its traditional LED production to a focus on silicon based sensors, now accounting for between 60% and 70% of revenue, while LED products have been reduced to between 20% and 30%, although last year the company was the largest provider of pulse oximetry (green-light LEDs) sensors for the Apple Watch. Opto-tech is also becoming certified as a VCSEL sensor supplier and will begin shipments in 2H, which is a plus, but that is not why we note the company..
The reason we mention the company is that they have just put in place a price increase of between 10% and 30% across all product lines, a result of rising material costs, which will affect all orders received in 2021, going back to January. In an attempt to soften the blow, the company states that they will not raise prices further in the 2nd quarter, but went no further than that about additional price increases later in the year.
So far this year a number of lighting companies have raised prices for all sorts of reasons. One company cited increasing steel prices as a motivation for raising lighting pole prices by 5%, a lighting fixture company citing raw material shortages for a 7.5% across-the-board increase, another with a 3% increase on LED lamps and drivers along with an 8% increase on fixtures, poles, and controls, and the list goes on with increases from between 3% and 10% from a wide variety of commercial lighting companies, most of which came in mid-February. We believe few of these increases reflect LED prices and are primarily based on raw materials, so we would expect another round of increases as the silicon side of lighting sees higher prices.
The reason we mention the company is that they have just put in place a price increase of between 10% and 30% across all product lines, a result of rising material costs, which will affect all orders received in 2021, going back to January. In an attempt to soften the blow, the company states that they will not raise prices further in the 2nd quarter, but went no further than that about additional price increases later in the year.
So far this year a number of lighting companies have raised prices for all sorts of reasons. One company cited increasing steel prices as a motivation for raising lighting pole prices by 5%, a lighting fixture company citing raw material shortages for a 7.5% across-the-board increase, another with a 3% increase on LED lamps and drivers along with an 8% increase on fixtures, poles, and controls, and the list goes on with increases from between 3% and 10% from a wide variety of commercial lighting companies, most of which came in mid-February. We believe few of these increases reflect LED prices and are primarily based on raw materials, so we would expect another round of increases as the silicon side of lighting sees higher prices.
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