- Driven by CDT monitor replacement in North American and West European markets, as well as steadily increasing bundle rates by PC vendors, LCD monitors are expected to account for over 50% of global monitor supply in the second quarter of 2004.
Taiwanese LCD monitor share of global supply is forecasted to break 70% in 2004 due to a number of factors. The Taiwanese LCD monitor industry chain is growing increasingly mature, and in-house production of key components is steadily climbing. Samsung's branded business is deepening concerns among PC vendor customers, such as Dell, and LG's cooperation with Sony has recently undergone change due to delivery problems. Added the client base Taiwanese makers have built up in the PC sector, the outsourcing strategies of international vendors are increasingly favoring Taiwanese makers over Korean players.
In the Taiwanese LCD TV industry, panel prices continue to fall and orders are flowing in from international consumer electronics vendors and PC vendors moving into the consumer electronics sector, such as Gateway. In the first quarter of 2004 Taiwanese LCD TV shipment volume hit a new high of 400,000 units. Close to the 410,000-unit shipment scale seen throughout all of 2003, this abrupt growth spurt demonstrates that the Taiwanese LCD TV industry is entering a stage of rapid growth.
However, given later entry than Japanese and Korean makers, Taiwanese LCD TV makers are behind in image processing technology and face high customs duties in various regional markets. Most production is also highly concentrated in Taiwan and China. Added that most Taiwanese LCD TV panel supply is 30" and smaller, aggressive ordering by TV channel players has brought about a varied size mix for Taiwanese LCD TV shipments as these players look to diversify product lines. At present the top eight global LCD TV brands hold over 80% market share, leaving Taiwanese makers with only orders for 20" and smaller LCD TVs, where demands for image quality are less stringent and customs duties can be avoided. Once capacity ramps up on 5G and 6G lines in 2004, share of 20" LCD TVs is expected to slide from roughly 80% in 2003 to about 50%. Room for price erosion on larger LCD TVs, meanwhile, presents both opportunities and challenges for Taiwanese makers.