LCD sales hit their peak

LCD sales hit their peak

Aggressive vendor plays and waning desktop PC adoption see market contract

Resellers have squeezed the last drop of blood from the LCD monitor market for some time to come, IDC claims.

While the market segment chalked up 16.9 per cent growth year-on-year during Q4, 2006, the market contracted 8.7 per cent sequentially, according to the market analyst.

With LCD monitors now saturating the marketplace and having a longer lifespan than their CRT-based cousins, it was unlikely that users - whether home users or businesses - would purchase further LCD monitors for the time being, senior analyst, Lily Lin, said. The decline in desktop PCs was also a contributor to the slower growth rates.

"LCDs have seen their peak for some time to come," she said. "Their sales, including the attach rate to PCs, peaked during 2006. While there's still the chance that some users will buy a second LCD, it's still not very many."

While the situation presents a challenge to the channel, vendors aren't out of the woods either, with fierce competition in the low-end of the market creating a tough battle. Lin said the re-emergence of vendors such as Hyundai into the LCD market, alongside new entrants like MAG, was creating a highly competitive field not only in the 20-inch and 22-inch marketplaces but also in the traditionally budget-friendly 17-inch and 19-inch space.

Competition from the smaller vendors, however, still wasn't enough to shake the mainstays of the industry. The top five branded monitor vendors in Q4, 2006, were: Samsung (18.3 per cent), BenQ (15.3 per cent), Viewsonic (14.7 per cent), LG (13.3 per cent) and Acer (12.8 per cent). Other brands made up 25.6 per cent.

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