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Monitors: Slimline growth

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DQW Bureau
New Update





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The monitor market pulled through another year with LCDs further climbing the

charts. The monitor indus­try underwent an interes­ting change in the last one

year. On one hand, there was a shift from the CRT to TFT-LCD monitors, and on

the other, there was a marked preference for larger screen sizes, from 15 to

17" and above in both CRT and TFT monitor categories. On the whole, the

industry has grown in excess of 36 percent.

The display market in India underwent rapid changes. The TFT-LCD mar­ket is

outpacing the growth of CRT monitors and there is a sharp shift towards 17"

LCD moni­tors. Gro­wing awareness of LCD tech­nology and dec­line in the

price differential bet­ween CRT and LCD moni­tors have contributed to the

growth of LCD monitor market growth in India.

According to the indus­try estimates, LCD monitor market in India stood at

around eight lakh in unit terms by the end of the fis­cal, a huge rise from

around three lakh units last year. If we take CRTs alone, the contri­bution of

15" moni­tors was 56 percent while that of 17"-and-above CRTs was 44

percent. This year, in the first five months, the contribution of 15" CRTs

has dipped to 42 per­cent, while the contribu­tion of 17"-and-above CRTs

has grown to 58 per­cent. In LCD, the 15" monitor sales have reduced from

around 70 percent last year to 50 percent this year, while the contribution of

17" and 19" LCD monitors has grown from 25 percent last year to around

45 percent. 

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LCD vs CRT (Units)



 



2004-05



2005-06



CRT



3,371,755



4,164,163



LCD



283,420



807,314



Total



3,655,175



4,971,477



Source: IDC India,

2006



 

Branded vs OEM

(Units)



 



2004-05



2005-06



CBranded



2,656,847



2,879,202



OEM



998,328



2,092,275



Total



3,655,175



4,971,477



Source: IDC India,

2006



Growing

awareness of LCD technology and decline in the price differential between

CRT and LCD monitors have contributed to the growth of LCD monitor market

growth in India.

Bullish Growth



The CRT has reached its saturation point with its full-flat version. Prohibi­tive

costs had limited the adoption of LCDs in the past, but a decline in its price

has expanded the consumer options. Verti­cals like healthcare, hotels,

airports, BPO, and IT are the key markets for LCD at present. According to 

estimates, these verticals consumed more than 80 percent of the LCD

shipments.

A close look at the tan­gible and intangible bene­fits of LCDs indicates

that large and mid-sized enter­prise-monitor-buying decisions are increasingly

favoring LCDs. For insta­nce, a 17" CRT monitor today costs around Rs

6,000 and the LCD monitor Rs 10,000. One needs to pay a premium of Rs 4,000 in

order to acquire a 15" LCD monitor. But the real value of the LCD lies in

the lower running costs, and shorter payback period of between two-to-three

years through saving in space and electricity.

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Increasing number of Players



The end-user price of LCD monitors dropped by 15 percent during FY 2005-06,

improving affordability. Samsung, one of the lea­ding vendors in the moni­tor

space, alone shipped close to 1.1 million monitors during the year (including

CRT). The share of Sam­sung LCDs of its total monitor sales is around 11

percent in unit terms. Meanwhile, LG too flooded the market with a number of

offerings. Other leading players like BenQ made significant inroads in the LCD

space with a slew of offerings. BenQ was one of the first to reduce display

response time to 12 ms and introduced the 2-ms-response-time LCD moni­tors

aimed at enhancing the multimedia experience. BenQ shipped around 55,000 LCDs.

The buoya­ncy in the market has led to the entry of new players like Zenith.

HCL registered a good demand for its LCD offe­rings. HCL went into an ex­pan­sion

spree and increa­sed its reach across the country making significant inroads in

the B and C class cities. ViewSonic and Philips also upped their ante during the

year. View­Sonic, which had kept a low profile in the Indian monitor space by

catering only to the niche market for high-end LCDs, firmed up its expansion

plans to foray into the CRT space soon.

Pointers: Asia

Pacific Monitor Market (Excluding Japan)

  • Production-wise,

    the 17" CRTs were favored as the entry-level choice. These

    offered the best price-performance package compared to the cheaper but

    smaller 15" CRTs.

  • 17" LCDs

    outsold the 15" models in 2005 by approximately 2:1.Those looking

    to upgrade to the mainstream 17" size will opt for either

    19" widescreen choices.

  • 19" LCDs are

    expected to overtake 15" sales across APEJ by 2008, driven by

    falling prices, increased desktop bundling and widescreen adoption of

    this particular size.

  • Shift in focus to

    the 20" widescreen size will be the main driver for sales. Some

    PC vendors in developed countries are now opting to bundle 20"

    widescreen with high-end desktop systems.

  • India, Indonesia,

    Philippines and Vietnam are expected to show the strongest uptake for

    LCDs by 2010, as strong projected growth in desktop sales are expected

    to ramp up the sale of attached monitors. In the corporate

    environment, LCD desktop bundles become increasingly prevalent even in

    the less-developed countries where CRTs are still entrenched in the

    consumer space.

Source: IDC

Market share (branded)







Samsung alone shipped close to 1.1 million monitors during the year. LG

too flooded the market with a number of offerings

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Going Forward



In the Indian context, the vendors are confident that the inherent benefits

will increase the volumes for LCDs in the days ahead. The OEMs are also pushing

LCDs with PCs. The chan­nels also evinced a keen interest in pushing more LCDs.

For the same number of monitors sold, one gets almost significantly more revenue

than by selling the same number of CRTs, as the channel earns higher margins.

Meanwhile, since, LCDs take lesser space, the logistics costs of doing LCD

business are significantly lower. In all, a further climb of LCDs in the moni­tor

charts looks imminent.

Global Trends



According to IDC India, the PC monitors market totaled 39.8 million units in

2005, registering an increase of 15.6 percent over the pre­vious year. Branded

market for standalone monitors grew by 9.1 per­cent in unit shipments, and OEM

(bun­d­led) monitors grew rapi­dly at 25 percent over the same period. Strong

LCD growth in the OEM market in 2005 was a major high­light, with shipments ex­ceeding

CRT sales, which remained flat over the same period.

Although the CRT form-factor was stronger than LCD across Asia-Pacific in

2005, IDC expects overall LCD sales to over­take CRTs in the first quarter of

2006, mirroring the trend already seen in the OEM market.

Focusing on the growing countries will be the key to secure margins. India,

Indo­nesia and the Philip­pines are expected to show a positive CAGR for CRTs

through 2010, as the domes­tic manufacture is able to fulfill the local demand

by cost-conscious buyers, despite regional plants slowing down the CRT

production.

Shrikanth G


shrikanthg@cybermedia.co.in

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