Strong Demand from Internet Cafés Boosted the PRC PC Monitor Market in 2Q2007, as Large Wide-Screen LCDs Become More Popular

18. 11. 2007 | 11/2007 | Comments [0]

Strong Demand from Internet Cafés Boosted the PRC PC Monitor Market in 2Q2007, as Large Wide-Screen LCDs Become More Popular. According to IDC's Asia/Pacific Quarterly PC Monitor Tracker (2Q2007), total shipments of PC monitors in the PRC market in the second quarter of 2007 were 8.18 million units, a 21.9% sequential growth, and a 37.6% increase compared to the same quarter in 2006. The LCD monitor market continued its strong growth, while the CRT monitor market maintains its decline, falling 47.6% year-on-year.

Strong Demand from Internet Cafés Boosted the PRC PC Monitor Market in 2Q2007, as Large Wide-Screen LCDs Become More Popular

According to IDC's Asia/Pacific Quarterly PC Monitor Tracker (2Q2007), total shipments of PC monitors in the PRC market in the second quarter of 2007 were 8.18 million units, a 21.9% sequential growth, and a 37.6% increase compared to the same quarter in 2006. The LCD monitor market continued its strong growth, while the CRT monitor market maintains its decline, falling 47.6% year-on-year.

LCD monitor shipments increased strongly, posting a 92.5% year-on-year growth and a 27.8% sequential growth. Shortage of LCD panels from suppliers led to a slight increase in prices of 17in. and 19in. LCD monitors. Increasing market acceptance of these monitors, coupled with CRT-LCD migration, became the key driver of growth for LCD monitors. Thanks to narrowing price gaps and rapid development of the digital home, large wide-screen LCD monitors continued growing strongly in 2Q07.

Fiona Wu, Analyst at IDC's China Computing Systems Research, characterized the 2Q07 China PC monitor market as follows:

1. Shortage of panels led to an increase in prices of smaller LCD monitors

Due to the shortage of smaller PC monitor LCD panels, prices of 15in. and 17in. LCD monitors rose slightly. Conversely, prices of wide-screen and larger size panels continued to fall. As the price difference between the 17in. and 19in. sizes narrows, more consumers tended to purchase the 19in. LCD monitors. Although 17in. LCD monitors still occupied a large proportion of the commercial segment, the 19in. monitor is already playing a leading role in the overall monitor market.

2. Strong demand from Internet Cafés boosted the monitor market

The Chinese government has ceased to issue licenses for new Internet Cafés since July 1, 2007, so a large number of Internet Cafés were rushing to begin operations before that deadline. This contributed to the growth of the China PC monitor market. In addition, older Internet Cafés upgraded from CRT to LCD monitors, which contributed to LCD sales.

3. CRT monitors still have a place in China

In the 2Q’07 non-bundled market, the CRT monitor market grew a marginal 0.3% sequentially, driven mainly by demand from schools in 4-6 tier cities. Many trading halls in stock exchanges are equipped with 15in. CRT monitors, as prices are lower than LCD monitors. IDC believes that the booming stock market will provide some opportunity for CRT monitors, but only in the short term as this market is also expected to switch to LCDs soon.

4. Increasing popularity of larger LCDs and wide-screen aspect monitors

Many PC monitor vendors launched large-scale marketing activities to promote larger wide-screen LCD monitors, a necessary move as desktop OEMs captured mainstream LCD sizes for bundling with their desktops. In addition, expanding yield rates at newer generation panel plants have also led to lower costs of the larger LCD sizes.

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