Monitor-makers bear brunt of LCD shortage

Simultaneous surges in demand from the laptop, television and desktop PC monitor markets have spurred a shortage in 15 and 17-inch LCD panels, leading to price increases, according to iSuppli/Stanford Resources research.

Monitor makers, the largest customer segment for these panels, are taking the brunt of the shortage. They are the low bidders in the LCD panel market, at the end of the supply queue, after notebook and TV customers. 

The shortage and price increases come during a critical juncture for the LCD monitor market. 

PC demand is finally improving, but price remains a strong consideration for buyers. Customers expecting to package a low-priced flat panel display with their new desktop system may find themselves facing higher prices and shipment delays.

Branded monitor makers, faced with a demand/supply imbalance of their own and weary of constant panel price increases, are finally passing on those price rises to end-users. 

Pricing for 15-inch monitors, which had fallen below $250 at the end-user level, is now back in the $300 and higher range for many products. 

Also, the value-priced sub-$350 17-inch LCD monitor offers largely have disappeared. 

The demand for 17-inch CRT monitors already is heating up as monitor and system vendors work to fill the gap in the price/performance market created by the contraction in 15-inch LCD monitor supply. 

hile some of the disappointed 15-inch LCD monitor customers were willing to jump to a $329 17-inch LCD monitor as an alternative, the leap to a $399 17-inch display represents too great of a gap for many customers.

A potential slowdown in LCD monitor demand may not concern panel manufacturers as much as it once did, given the growing demand from the LCD TV market. 

DQCI NEWS BUREAU