In the fourth quarter of 2004, the Taiwanese PC monitor industry, inclusive of LCD (Liquid Crystal Display) and CRT (Cathode Ray Tube) monitors, experienced year-on-year growth in both shipment volume and value. Total shipment volume exceeded 23 million units, while combined shipment value added up to over US$4.9 billion.

The rapid LCD panel price fall elicited a favorable turn in the consumers' wait-and-see attitude. Traditional peak sales in the third quarter was deferred to the fourth, and brought the shipments of LCD monitors to rebound substantially in the fourth quarter. Taiwanese LCD monitor shipments in the fourth quarter of 2004 consequently reached approximately 14 million units, posting around 33% sequential growth and 36% year-on-year, setting another record high.

The ongoing price fall of 17" LCD monitors continued to compress the shipments of 15" LCD models in the fourth quarter, while consumers' increasing application of monitors for multimedia entertainment fanned the demand for 19" LCD monitors. Coupled with a large-scale price deduction in 19" LCD monitors, the shipment share of 19" models registered notable increase in the fourth quarter of 2004.

The uninterrupted LCD panel price drop in the fourth quarter tugged down the price for LCD monitors visibly. Although the share held by 19" models saw a remarkable increase to 12%, its relatively low share still allowed the Taiwanese LCD monitor ASP (Average Selling Price) to slip around 10% sequentially, from US$317 to US$287 in the fourth quarter.  Shipment value, impacted more heavily by the boost in shipment volume, was able to reach US$4.1 billion, marking a 21% sequential increase from the third quarter, and growing around 24% year-on-year.

In the CRT monitor segment, fourth quarter not only elicited small-scale growth in major markets such as Europe and the US, but prompted continual growth in the Chinese as well as other emerging markets. As a result, the Taiwanese CRT monitor shipment volume totaled approximately 8.8 million units in the fourth quarter of 2004, posting a sequential increase of 3%, yet around a 20% decline year-on-year. Price reductions on LCD monitors further pressed the ASP of CRT monitors to US$93 in the fourth quarter; shipment value stood roughly at US$800 million.

Looking towards the first quarter of 2005, LCD panel prices are projected to drop even lower, LCD monitor price tags. However, influenced by the onset of the traditional slack season as well as the slow growth in PC shipments, LCD monitor shipment volume is expected to grow by just 2% in the first quarter of 2005.

Although CRT monitors were able to maintain slight growth under the momentum of peak sales and demand from emerging markets in the fourth quarter, the LCD monitor replacement effect is anticipated to intensify in the first quarter of 2005, as the prices of LCD monitors slip further down. Taiwanese CRT monitor shipment volume is thus forecasted to decline around 13% sequentially in the first quarter of 2005, to approximately seven million units.

Market Intelligence Center, based in Taipei, Taiwan, was founded in 1987. MIC is Taiwan's premier IT industry research and consulting firm providing intelligence, in-depth analysis, and strategic consulting services on global IT product and technology trends, focusing on markets and industries in Asia-Pacific. MIC is part of the Institute for Information Industry. https://mic.iii.org.tw/english