Long-term earnings downturn, enterprises to maintain normal operation is really not easy, and the industry generally exists "debts" situation, once the capital flow difficulties, it is not difficult to imagine research, production, sales of the three major links in spending, the first cut is likely to be research and development funds. As we all know, product development, in addition to the formation of technical team, to carry out technical reserves, but also need to prepare the corresponding equipment, and most importantly, the need to continue to invest a lot of funds, and research and development results can be put into production, but unpredictable. Under tight funding, slowing down the pace of research and development is naturally understandable.
In addition, some manufacturers want to actively upgrade product innovation to improve product performance and quality, increase product competitiveness. But at the same time, the quality of the promotion of research and development, material upgrades and other costs will be distributed to the product. Of course, high performance, good quality products are generally easier to obtain customer favorite, but in the current market product price is generally low, the price of innovative products and similar products will inevitably be at a disadvantage, and customers on higher prices of products are also prone to doubt and distrust, resulting in high prices of products is difficult to accept easily. In such a "thankless" situation, the company innovation enthusiasm frustrated, the pace of development and progress of the industry will also become slow.
And, when this low price wave has passed, the industry may be dominated by a few large enterprises, and the rest of the business and later will be hard to shake their position. Under the competition pressure greatly reduces, these enterprises will tend to be conservative, lacks the impetus of the innovation development, in the past, is unfavorable to the LED display innovation promotion.