Why do LEDs have a higher initial cost than conventional light sources?

LEDs are made of electronic components that need to be packaged together to offer long lasting efficient light sources to the end user. Apart from the LED chip itself which has sapphire and gallium in the semiconductor, the process of packaging with materials like ceramic, rare earth phosphors, silicone, solder and gold wire add to the overall cost. White LEDs require further tests for calibration and standardization.