while component business continued to have higher gross margins

Looking forward, the company expected assembly business including general lighting and low-temperature lighting to account for 70% of its total revenues in 2011, while component business continued to led high bay light have higher gross margins. And Europe gross margins would be expected to beyond 40% and around 30% in Taiwan, China and Hong Kong.

Some light bulb makers reportedly would introduce LED lighting products at end-use price of US$10 in 2011, which would compete for pricing scheduled to enter the LED sector with distributors and retailers well-known, and the price battle would only intensify in the future.In the past, Nichia had used to supply its LEDs directly to end-use customers, without using distribution channels anywhere in the world. Nichia had also broken with its own tradition by cooperating with Lumitronix.

Lumitronix LED-Technik GmbH was in Hechingen of Germany, which had already served more than 100,000 customers, and the company produced LED Linear high bay light products and had a LED measuring technology at its disposal. According to Lumitronix, Nichia would pass on to the distributor the majority of its own customers in Germany.