LCD monitor war looms

InfoWorld |  Hardware

A silent price war between LCD flat-panel display manufacturers has caused LCD prices to fall steadily during the past six months. That descent is about to dip even lower, according to an industry source who does not expect a nadir in flat-panel prices until the winter holiday season.

"We've been in a [flat-panel] price war for a good six months," the source said. "But expect new price points in the next couple of weeks. You will see the lowest average selling prices for flat panels ever. I don't see the price decline bottoming out until the end of the year."

Aggressive competitive pricing -- expected as early as next week from NEC-Mitsubishi -- could be the catalyst for an escalated flat-panel price war, the source said.

NEC officials are already talking tough. "We're going to be making a significant announcement; a very clear indication of our desire to maintain our No. 1 brand share," said Al Giazzon, a vice president of marketing at NEC. Giazzon stopped short of predicting a price war but did say that NEC will flex its "ability to pass along manufacturing savings to [its] customers."

LCD Lessons

LCD monitors still cost more than CRT monitors, but in the long run they pay their own dividends.

  • * Consume 60 percent less power
  • * Cause less heat dissipation
  • * Take up less space

Source: InfoWorld

The arrival of 15-inch LCDs for under $500 and sub-$800 17-inch LCDs would be added incentive to buy LCD displays, which already pay dividends in a number of other ways, according to Martin Reynolds, a research fellow at Gartner, an industry think tank in Stamford, Conn.

Reynolds said LCD monitors are better on the eyes, offer "significant space savings," create less heat, and consume "about half the power" of CRT monitors.

Power conservation is a timely issue, particularly in California, where Governor Gray Davis signed two bills this week providing more than $800 million for energy conservation programs. Added air conditioner cycles to keep offices filled with warmer CRT monitors cool is a concern for the Golden State.

Companies looking to save money with flat panels should not shy from the high initial investment, Reynolds said.

Companies would be "saving on both power costs and air conditioning costs, which is going to be a big deal [this summer]," Reynolds said. He added that the current industry transition from analog to digital flat-panel interfaces will also drive prices down.

When analog interfaces are removed from flat-panel monitors altogether, the cost of LCDs will drop another $150, according to NEC's Giazzon.

Join us:
Facebook

Twitter

Pinterest

Tumblr

LinkedIn

Google+

Answers - Powered by ITworld

ITworld Answers helps you solve problems and share expertise. Ask a question or take a crack at answering the new questions below.

Join us:
Facebook

Twitter

Pinterest

Tumblr

LinkedIn

Google+

Ask a Question