WitsView: Competitive pricing is the key to market dominance - global LCD monitor market growth rate will likely reach 3% in 2010
Having suffered the financial downturn, the global economy is gradually on the path of recovery in 2009. Under the gloomy economy, prices of all three large-sized panel applications were reduced, and LCD monitors bore the brunt of the impact. This is because there were no significant breakthroughs in monitor specifications; therefore, in the absence of a marketing buzz, LCD monitor vendors can only attract consumers’ attention through offering lower prices.
Amid the price competition, first-tier brands have the advantage of their brand image; in comparison, market share of second-, third-tier brands and white-brands are impacted by the low-price strategy from first-tier brands. As a result, WitsView’s survey indicates that, compared to 2008, global LCD monitor shipments declined by 3% in 2009 to 156 million units. Moreover, market share is more concentrated on top ten brand vendors.
In terms of market outlook for 2010, WitsView analyst Linda Lin noted, given that it is difficult to raise street prices of LCD monitors, entry-level or low-priced products promoted by first-tier vendors will continue to dominate the market. As for touch-screen and 3D applications, these new features will not become the market mainstream this year, despite their high media attention. This is mainly because their costs are still high and the technology has yet to be enhanced.
In market segments, price promotions will continue to drive up shipments from the consumer market. However, the commercial market, which has been tepid for a long time, is expected to improve gradually as the economy recovers. Hence, WitsView forecasts that global LCD monitor market will grow by 3% to 161 million units in 2010.
