SEPTEMBER 26--DisplaySearch (Austin, TX;www.displaysearch.com) partner in Europe, Meko, has just published its latest DisplayCast CRT and LCD reports indicating that the European desktop-monitor market volume declined 20.9% Q/Q and 2% Y/Y in Q2'02. By technology, CRT unit sales fell by more than 20% Y/Y, reflecting the strong shift toward LCD monitors. As a result of the rise in LCD-monitor pricing during the first two quarters of 2002, LCD-monitor sales volumes declined sequentially for the first time. The total sales volume of LCD monitors in Europe was just under 1.9 million units, down 15.9% Q/Q while rising 130% Y/Y.
"Underlying these top-level trends, we noticed that in some countries the LCD share of the market by volume also declined," commented Bob Raikes, Meko managing director and head of market research. "For example, in France, Spain, and the UK, the penetration rate declined sequentially. In other territories where the adoption rate has historically been high, such as Switzerland, we saw a marked slowdown in the growth of the LCD sector," he added.
In Switzerland, LCDs have represented more than 50% of the market by volume since Q2'01. In the same period in 2002, LCD share was 79.8%, but in Q2 this rose only slightly to 82.2%. Other countries that experienced LCD-monitor growth as a result of price reductions throughout 2001 have also seen a slowdown in growth. Italian monitor buyers were keen to take on the stylish new products at the end of last year, but as prices have risen again, the cost-conscious country has seen sales growth slow in Q2. As a result of rising prices, the 15-in. segment has been particularly affected, with sales down more than 18% sequentially.
LCD panel makers in Asia have moved more production to larger screen sizes to keep average selling prices and margins as high as possible. However, prices for 17-in. LCD monitors have continued to fall as Korean and Taiwan panel makers increased availability of this screen size. As a result, sales of 17-in. LCD monitors grew sequentially--the only category to do so. The lower prices and continued improvement in performance of 17-in. LCD monitors has caused buyers to move away from the 18-in. segment. Sales in this category fell by more than 29% sequentially and rose only 83% Y/Y. A decrease in the number of large-volume projects due to a slowdown in corporate spending, particularly in the UK, France, and Germany, has also hampered sales of 18-in. LCD monitors," said Raikes. "It is only in some of the developing markets in the eastern Europe that we saw growth in this category." Another factor that helped to squeeze the 18-in. segment is the growing number of 19-in. LCD monitors that are available.
By vendor, the new HP was the largest supplier by volume in the LCD market followed by Samsung, Dell, Philips, and Fujitsu-Siemens. In the CRT sector, Samsung further extended its lead with a 17.4% share. The new HP moved up into second place followed by Dell, LG, and Philips.