The descent was less steep in terms of value

Typical low-end string releases are good for one-season use only. These have a basic linear construction, fitted with single-color, steady incandescent bulbs. The life span is short, ranging from 1,000 to 1,200 hours. The plugs and cables are made of locally sourced ABS. Products with a length of 5m are priced from $0.75 to $4.Upscale versions have a much longer life span, reaching 100,000 hours. The bulbs are usually sourced from Taiwan, while raw plastic with high temperature resistance is purchased in South Korea or Germany.

The economic crunch that hit key overseas markets contributed largely to the 22 percent decrease in exports of China-made Christmas lights. In 2008, the country shipped 385 million pieces, down from the previous year’s 498 million.The descent was less steep in terms of value, thanks to the higher average per-unit value in 2008. Exports amounted to $995 million, only 2 percent lower than 2007 levels.Customs statistics show that 40 percent of China’s exports in the line go to the US. Average monthly shipments bound for there are valued at $35 million. Other key markets are the UK and the Netherlands, importing $6.2 million and $5.8 million worth per month.Most Christmas light suppliers are located in Zhejiang and Guangdong. Combined exports from these provinces account for nearly 90 percent of the country’s total.

The company has worked out various LED chips for large-sized LED-backlit notebook PCs, effectively pushing up its single-month gross profit rate to a level of over 30% in the second quarter of this year, said Yeh. In light of upcoming strong demand, the firm has doubled its output of SMD (surface mount device) LED ships to 1.2 billion units per month, and is expecting record new highs in its single-month revenues in the second half of the year.Yeh also pointed out that despite downstream LED chip makers expanding their outputs, supply will likely still fall behind demand until the second half of next year. Recently, downstream LED testing and packaging companies have been plagued by severe shortages of LED chips, causing prices of LED chips to rise.