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Strategies & Market Trends : Gorilla and King Portfolio Candidates
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To: Uncle Frank who wrote (17888)2/14/2000 2:01:00 AM
From: FLSTF97  Read Replies (1) of 54805
 
CREE LED Switching Costs

Are there any switching costs associated with blue LEDs?

There are some but they would be overcome quickly if the price difference was significant (say 10% or so).

First not all LEDS are packaged as a single unit, some are arrays. There could be tooling/reprogramming costs especially if we are talking SiC vs Sapphire. I don't know for a fact, but I would guess this may be on the order of $1000 to a few 10's of thousand dollars.

Probably the most significant cost would be requalification. That would be application specific. It could be many ten's of $1000.

Probably the biggest barrier (and its not that big) is the general inertia to change within a products life cycle.

I think that the other applications for SiC devices would have much higher switching costs because of the functionality being designed into a system and the expect longevity of those system.

In short, for the LED application the switching costs are not insurmountable.

FATBOY
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