- In the second quarter of 2004, shipment volume and value of Taiwanese PC monitors, both LCD (Liquid Crystal Display) and CRT (Cathode Ray Tube), showed year-on-year growth. Total shipment volume reached over 19 million units while shipment value amounted to approximately US$4.4 billion.
Despite the drive to replace CRT monitors in the consumer market, LCD monitors were impacted by seasonal effects and demand began to weaken at the end of the second quarter of 2004. Inventory pile-ups in the channels thus increased, slowing down growth of shipment volume among Taiwanese makers. In the second quarter of 2004, Taiwanese LCD monitor shipment volume neared 10.5 million units, failing to render record shipment.
The increased production capacity of LCD monitor panel was undercut by shrinking demand arising from seasonality in the second quarter of 2004. Except for 15" panels, other mainstream panels began to drop in price at the end of the second quarter. However, the ascent in shipment share of panel larger than 17" provided relief to LCD monitor ASP (Average Selling Price). Taiwanese LCD monitor shipment value registered quarterly growth to reach approximately US$3.5 billion, jumping nearly 70% year on year.
Due to the higher prices of LCD monitors, emerging markets continued to adopt CRT monitors for PCs. Driven by booming PC demand, PC makers still released a large volume of orders for CRT monitors, although supply was tightened by glass shortages. As a result, Taiwanese CRT monitor shipment volume only reached approximately 8.6 million units, yet still growing around 5% year on year. Despite insignificant changes in shipment share of different sizes, tight supply edged up prices of tubes, which accounted for the bulk of monitor cost. ASP thus increased and shipment value totaled approximately US$ 900 million in the second quarter of 2004.
In the third quarter of 2004, despite the promise of a strong retail season in the Taiwanese LCD monitor industry, customers are expected to delay new rollouts before inventory problems are relieved. In addition, falling prices of panels are inspiring PC bundling. As a result, Taiwanese LCD monitor shipment volume is likely to reach a record high, yet growth will likely be slower than previously registered.
The CRT monitor shortage is expected to be addressed as glass supply recovers strength. Coupled with increased demand from emerging markets, Taiwanese CRT monitor shipment volume is anticipated to near ten million units, registering a year-on-year decline. However, its future performance remains to be seen when LCD panel replacement intensifies due to a fall in prices.