"I haven't seen much discussion on these points in the professional comments or on this message board,"
Mostly because Cree is a lighting company foremost and derives the bulk of it's income from LED product related sales.
CREE has been in the automotive lamp business for a while, both for OEM and retrofits. They also are not a light bulb company, they are a semiconductor company which has many arms. I haven't seen much discussion on these points in the professional comments or on this message board, but there are more ways to make money than everyone is thinking about.
Advertising on the food network is not about people that cook but love to cook enough to watch shows about being better. The are targeting a different segment of the population that generally does not shop at Home Depot. If they intended to only sell the bulbs in the Home Depot for the next few months advertising on the food network is a waste of money because the advertising dollars could be spend better on a different network. That is a fact. I'm confident you will be proved wrong in short order.
Also, based upon the $1,000,000,000 lifetime savings announcement they likely sold over 7,000,000 bulbs last year in 2,500 stores. Based upon my channel checks i think they could be on pace to sell 10,000,000 to 15,000,000 bulbs per year currently in the Home Depot alone. If they pick up some new channel partners and get in another few thousand stores it is big news and should move the stock nicely.
With the additional sku's, reduced pricing, energy star rebates, and bulb ban for the full year they will easily increase sales at he Home Depot this year. Then there are channel adds and later international growth. A lot of money coming in to build the brand.
" CREE has been marketing on the Food Network - not exactly Home Depot patrons"
People who like to cook don't go to Home Depot ? Now that's some pretty warped reasoning.
What? You have the nerve to post some BS innuendo about how VECO share price is justified here on the CREE board and spin it as another bash on CREE technology and management, when CREE has outperformed VECO as LED lighting finally gained traction the last couple of years. You repeatedly refuse to answer the questions I asked in reference to your original post. And you ask why I am calling you names??? You call CREE management creepy when you pull off crap like this buttcream?
This post of yours exposes you as a true slimeball. You are probably some dirtbag analyst who's trying to suck people into going long VECO and dumping CREE when they should be doing the opposite. Get lost you scum.
quantum---I don't own any commercial buildings, so I won't have to live with it. Annual system costs will always depend on power rate and burning hours and installed cost plus replacement costs over say 15 years.. Less than 4 years of continuous burn cycle for these high voltage LEDs which might mean a greater number of mid or lower voltage LEDs would be better?? Cost of replacement goes up with mounting heights. Maybe the life ratings will improve as CREE and others improve the designs of the high voltage LEDs.
So instead of lasting 20 years it will only last 12 years, I'm pretty sure we can live with that.
quantum---no factual data on life expectancy which will come later after the product is launched. Looks to be around 60% of what the best LED products are providing though, in my opinion.
It's all available on the Lumileds Press release page
1) When you search "Led Light Bulbs" on Home Depot website no longer are the first 15 products CREE
2) When they announced the new bulb and reduced pricing they did not use the phrase "exclusively at Home Depot"
3) CREE has been marketing on the Food Network - not exactly Home Depot patrons
4) On the last conference call Chuck said they add complementary channels
Only other reasons why we should see channel announcements for the bulb soon?
And what is the life expectancy of these new High Voltage LEDs, jcreameyboy000? Didn't Philips introduce some new long-life wooden shoes today???
Sentiment: Strong Buy
why not shine a light instead of cursing the darkness?
Why is this PR not generally available? Why does it not present efficiency including losses from the line power source? Why is Philips stock down today?
March.12, 2014 - 13:42 — Leah Rae
Today Philips Lumileds launched a mid-power LED, the LUXEON 3535 HV, which allows lighting manufacturers to design in high voltage drivers that are diminutive in size compared to standard drivers, enabling simplified design and lower total cost of the overall lighting solution. The company’s high voltage mid-power portfolio is available in industry leading 24V and 48V parts.
“The advantage of designing in high voltage LEDs is that they utilize drivers containing on average less than 20 components, relative to standard LED drivers that can contain up to 50 components. As a result, the total BOM cost can be reduced and the amount of inventory they need to carry to design the driver is minimized,” said Michael Howley, Product Manager at Philips Lumileds.
Applications for the LUXEON 3535 HV include space constrained lamps such as retrofit bulbs, downlights, wall sconces, wall packs, and pendant luminaires. “We’re finding that manufacturers of wall packs, wall sconces and pendants in many different regions of the world are interested in high voltage LED technology and the design simplicity it affords,” said Michael Howley.
Philips Lumileds is providing LM-80 data for its best-in-class 24V and 48V LUXEON 3535 HV LEDs. In addition, these LEDs are offered with a 1/9th micro color binning structure with 3- and 5-step color accuracy, offering the customer the benefit of tight color control.
Typical lumen output and efficacy of the LUXEON 3535 HV 48V at 20mA is 120 lm and 125 lm/W at a color temperature of 4000K and CRI of 80. The 24V LED at 20mA is 60 lm and 125 lm/W at a color temperature of 4000K and CRI of 80.
blackoutbuzz---I agree almost entirely with what you've said. I prefer to say "Earn" market share in lieu of steal market share. In my opinion, CREE is doing what they should be doing with their CapEx currently, and they'll do what's needed to grow more profitable business in the future. They're going to sell a whole bunch of LED bulbs, and they're the acknowledged market leader there. Their ability to produce has been an issue in the last 12 months as demand outstripped their ability to produce. They'll continue to support needed production, while doing other strategic things in several market segments going forward. They're building a multi-faceted juggernaut. It's always nice to have plenty of cash and plenty of borrowing power when you're building a juggernaut. I'm glad I don't own any shares of those legacy lighting companies anymore. GLTA.
Sentiment: Strong Buy