CREE surges 16% higher after announcing a sub $10 LED bulb to be sold at Home Depot
CREEs stock price went up $7 on the announcement.
It's a 40 watt equivalent bulb but it is a start. They are also will be selling a 60 watt equivalent bulb at Home Depot for $13. The 40 watt equivalent bulb consumes 6 watts. The 60 watt equivalent bulb consumes 9.5 watts for warm light and 9 watts for day light. Both are dimmable. Both are significantly more efficient than the competition and significantly lower in price. They are game changing. This will definitely disrupt the LED bulb industry.
$10 has been a price barrier everyone has been shooting for. Currently the highest brightness LED bulbs intended to replace incandescent bulbs are 75 watt equivalent. I am excluding any 100 watt equivalent bulbs which are too expensive to consider seriously. Go to CREEs web page for more info on the bulbs. The link to a video demo is on their home page. This product is nothing less than impressive.
Note that in order to get the same color as an incandescent bulb you need to buy a "warm light" LED bulb usually indicated as having a color temperature of 2700k to 3000k. These warmer colors are less efficient than the bluer cool white bulbs which are terrible for home use but adequate for outdoors.
If you look at the video on their web page you can see that they are using what they call an LED tower with multiple LEDs arrayed around it. I find it amazing that they can make this and sell it for less than $10. My guess is that they must have come up with some special automated assembly line that can assemble components on 3D surfaces like this with no labor. Also the efficiencies are incredible for a dimmable bulb. The circuitry required to make a bulb dimmable usually cost an extra 5% to 10% in efficiency. This is very impressive. I have to believe that they researched every possible way to dim an LED at the lowest cost and highest efficiency and made their decisions based on that. My guess is they have a ton of patents on this thing. Arg, text limit
Oh yeah, they also raised guidance. That couldn't hurt either. I will have to buy more shares now. I hate buying after the good news but one has to do what one has to do to make money I guess. If only I had bought yesterday.