Monitor Shipments Rise Again

DisplaySearch indicated in its latest Quarterly Desktop Monitor Shipment and Forecast Report that worldwidedesktop monitor shipments rose 11% in 2004 versus the same period last year, but fell 2% from the previous quarter to 31.8 million units. Q1’s LCD monitor shipment of 15.8 millionunits was above previous expectations by 300,000 units. However, with pricing continuing to rise for key sizes coupled with traditional seasonal declines in IT and CE buying cycles, Q2 projectionsshow a larger decline in unit volume than is typical.

According to DisplaySearch Vice-President Chris Connery, “While historically the market has seen traditional seasonal negative growth declines of between 1% and 3% in Q2 even in this category—one of the hottest growth categories in IT and CE—continued panel price increases have led to street price increases in a price sensitive market, and this has caused the LCD monitor market to slow more than expected in June with further weakness expected over the next few months. As a natural phenomenon as part of the LCD crystal cycle, however, projections are that the market will correct itself with pricing and production adjustments to bring the supply/demand balance back into alignment and continue to grow the LCD monitor adoption at rates previously predicted. The tendency is to over-react to quarterly slow downs, but in the maturing business of LCD production, suppliers are likely to learn from past mistakes to recognize the slowdown as more than just seasonal, but not likely to overcompensate with massive price cuts immediately. Because LCD manufacturers recognize the desktop monitor market as the significant market today for LCD technology, and because desktop monitor brands understand that retired CRT lines are not likely to be brought back online and that they will need LCDs to reach their volume targets, we expect healthy growth to return to this sector.”

Additional highlights from the report include:

  • While LCDs overtook CRTs in Q1, CRT shipments are expected to overtake LCDs in Q2 as CRT shipments slow down less than expected due to increases in demand spurred by continued LCD monitor price increases.
  • Analysis of the multi-function monitor (MFM), a convergence enabling technology allowing for TV and PC viewing off the same device and its continue growth even in traditionally slower sales seasons.
  • Analysis of the continued emergence of Wide Aspect Ratio desktop monitors for mainstream computing.

Visit DisplaySearch for more information on the report.

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