Australian PC Monitor Market Finally Turns the Corner, Says IDC
NORTH SYDNEY – SEPTEMBER 10, 2002 – IDC has just released the Australian PC monitor market results for the second quarter of 2002 (April – June), which shows an increase in the total monitor sales in accordance with IDC forecasts. Q2 2002 total monitor sales grew 16.6% compared to last quarter, the OEM market (monitors pre-bundled with first tier global PC vendors) in particular accounted for the majority of this growth by increasing 30.5% in volume from Q1 2002. The branded market (which accounts for all local sales by monitor vendors) also performed well, growing 5.5% sequentially.
The growth of the total monitor market was due to the rise in the overall Australian PC market which increased 9.4% from Q1 2002. This increase was the major factor that contributed to the OEM market's strong performance. In the branded market, increases in corporate and government spending plus the traditional cyclical nature of the market were the major factors that contributed to its growth in Q2,said Imraan Ali, IDC Associate Analyst for computing hardware.
The news, although encouraging for branded market vendors, has not affected the price and supply pressures that continue to inhibit the LCD market's expansion. Prices in the branded market again continued to increase in Q2 2002. CRT prices increased 1.1% sequentially, while LCD prices also rose 7.9% from the previous quarter.
Branded market vendors are also finding it increasingly more difficult to maintain their profitability in the LCD market. Margins continue to shrink and stock shortages are having a negative impact on business. Vendors are no longer able to absorb rising manufacturing costs and thus are forced to pass these costs on to the end user. However the second half of 2002 is expected to see LCD stock shortages ease and subsequent price reductions. The branded LCD market grew 34.2% compared to Q1 2002.
The CRT market's growth was also significant in Q2 2002, the total market increasing by 14.6% from Q1 2002. This has been due to the growing popularity of flat-screen CRT models. These models have become an attractive alternative to an LCD display due to the price sensitivity of end users in the market. Flat screen CRT's are increasingly accounting for a greater percentage of the overall volume in the branded CRT market.
On the vendor front the three major vendors again made up the top three in the branded market. The gap between the vendors was much closer than compared to Q1, with LG electronics maintaining top spot with a 16.7% share of the branded market, Mitsubishi a close second with 16.2%, and Samsung in third with 15.8%. Philips came in fourth with 11.8% and Viewsonic was a very distant fifth with a 6.3% share of the market. These five vendors accounted for 66.8% of the total volume shipped during Q2 2002,added Mr Ali.
In the CRT branded market, LG Electronics continued to be the top vendor accounting for 17.6% of the market. Mitsubishi was second (16.4%) and Samsung came in third (14.4 %). Samsung ran away in the branded LCD market claiming a share of 24.2%. Distant second was Mitsubishi (15.2%) and in third position was BenQ (12.5%).
IDC is the foremost global market intelligence and advisory firm helping clients gain insight into technology and eBusiness trends to develop sound business strategies. Using a combination of rigorous primary research, in-depth analysis, and client interaction, IDC forecasts local and worldwide markets and trends to deliver dependable service and client advice. More than 700 analysts in 43 countries provide global research with local content. IDC's customers comprise the world's leading IT suppliers, IT organisations, eBusiness companies and the financial community. Additional information can be found at www.idc.com.au