Three major reasons why LED display exports are better than domestic sales

During the “Eleventh Five-Year Plan” period, with the launch of “Guangjinjinhui” and “Fiber to the Home” projects, the promotion of three networks and 3G network construction, the market demand and production capacity of China's domestic fiber optic cable increased by 150%. Above, it has grown into the world's most important fiber optic cable market. Products in the optoelectronic cable industry are widely used in power, energy, sensing, medical, military, aerospace, industrial processing and control, and scientific research. Entering the “Twelfth Five-Year Plan”, the demand for fiber optic cable still maintains a growth trend. In 2011, the production and sales volume of optical fiber reached 110 million core kilometers. In 2012, it was nearly 130 million core kilometers. This year, the demand is expected to reach 140 million to 150 million core kilometers. Optical fiber cable production and sales accounted for more than 50% of the global total for several years. However, looking at the overall situation of China's optoelectronic cable industry, big but not strong, the situation of products in the middle and low end has not changed fundamentally, and there is still a big gap in the goal of becoming a strong country in optoelectronic cable manufacturing. The problems are mainly reflected in the following aspects:

Overcapacity, the ratio of supply and demand is seriously out of balance. At present, the overall investment in China's fiber optic cable industry is overheated, resulting in a capacity expansion rate far exceeding the speed of demand expansion. It is expected that China's fiber production capacity may reach 220 million to 240 million core kilometers in the near future. However, the demand for fiber optic cable in China is in a period of steady growth of demand peak, with an overall capacity of around 140 million core kilometers, with over 50% overcapacity; fiber inventory is relatively large, accounting for about 1/10 of current capacity, and there is still a growing trend. Overcapacity directly leads to a decline in product prices, a decline in efficiency, and a waste of resources. An important reason for overcapacity is the weak ability of independent innovation of enterprises. The competition of enterprises is mainly reflected in the expansion of the quantity and output of resources and the competition of prices, which makes capacity expansion difficult to suppress.

The ability of independent innovation needs to be improved. Due to insufficient investment in scientific research and low innovation ability in the industry, the technological innovation consciousness and system establishment with enterprises as the main body lags behind the pace of economic development, which makes China's optoelectronic cable manufacturing and manufacturing sector lack independent innovation technology, and key technologies are subject to people, resulting in new products, The development and development of new technologies and new processes can only follow the advanced foreign enterprises, and only focus on “quantity”, while neglecting the improvement of “quality”, restricting the development of China's optical cable manufacturing to high-end technology and high-end brands. It is difficult to realize the dream of optoelectronic cable power.

The supply of medium and low-end products exceeds demand, and the proportion of high-tech products is too low. The problems in China's optoelectronic cable industry structure are highlighted in the unreasonable industrial structure: many companies can only make a fuss about low-end products, and the price becomes a magic weapon for competition. The supply of low-end products exceeds demand, and high-end products basically rely on imports. In addition, factors such as irrational market structure have increased the instability of the industry, and the industrial layout needs further improvement.

Product quality has a downward trend. In recent years, due to the overcapacity of optoelectronic cables, the market competition is fierce. In addition, the centralized procurement of operators often takes low prices as an important “finalist” condition, resulting in continued low product prices and huge pressure on manufacturers. All manufacturers are increasingly focusing on market development and cost compression. Some optical cable manufacturers have reduced the production cost and even challenged the bottom line of product quality, which has affected the healthy development of China's national communication network and communication security.