JULY 2--DisplaySearch (Austin, TX; www.displaysearch.com), a flat-panel display (FPD) market research and consulting firm, discloses in its latest Quarterly Desktop Monitor Shipment and Forecast Report that worldwide liquid-crystal display (LCD) monitor shipments increased 17% Q/Q and 222% Y/Y to a supply-constrained, record high 7.47 million units in Q1-02. However, demand has slowed down during the summer buying season and has been compounded by higher prices and higher costs.
The thin-film transistor (TFT) LCD monitor-module weighted-average prices increased 29% for 15-in. monitors from September 2001 to June 2002 with LCD monitor prices rising 6% and limited LCD monitor discounts and rebates. In response to slower demand and an easing of the TFT LCD supply constraints, weighted-average TFT LCD monitor module prices are expected to drop for most monitor sizes in July 2002. All suppliers are expected to offer price reductions at the 15-in. size. While LCD monitor shipments are expected to rise 7% in Q2-02, growth is expected to slow to 3% in Q3-02 and could decline if September 2002 is not as strong as expected. Lower panel prices should eventually result in lower LCD monitor prices, which should help boost demand in this price-sensitive market.
Driving the Q1-02 market was the North American region and the 17-in. monitor size market. North America earned its highest share of the global market to date at 34.2% on a 23% Q/Q growth, and widened its advantage over Europe as the largest region for LCD monitor shipments. Worldwide, 17-in. LCD monitor shipments accounted for much of the Q1-02 growth, rising 60% to more than 1.35 million units and an 18.1% share, up from 13.2%. The 17-in. monitor shipments are expected to spur the LCD monitor market for the next few years, and to experience double-digit growth in 13 of the next 15 quarters.
The 15-in. LCD monitors lost 5% market share in Q1-02 after gaining market share for 4 consecutive quarters and they are expected to continue to lose ground to 17-in. monitors over the 8-quarter forecast period. In fact, 17-in. LCD monitors are expected to overtake 15-in. LCD monitors as the most popular size in Q2-04.