In the fourth quarter of 2004, Taiwanese projector shipments shot to another record high, mainly due to the sufficient supply of key components and the increase in demand from the US and Asia Pacific regional markets. Fourth quarter shipment volume thus reached 290,000 units, posting 12% sequential growth, and 119% year-on-year. Shipment value also recorded growth in the fourth quarter, bumping up 31% sequentially and 93% year-on-year. ASP (Average Selling Price) experienced a slight sequential decline, however. On the other hand, concentration in the Taiwanese projector industry dropped slightly in the fourth quarter, although the combined share held by the top two makers still added up to over 88% of total shipments.

The Taiwanese projector product mix is comprised mainly of LCD (Liquid Crystal Display) and DLP (Digital Light Processing) models. However, the formerly instable supply of HTPS (High Temperature Poly Silicon) panels in addition to the rising yield rate and supply stability of DMD (Digital Micromirror Device) chips have driven many Taiwanese makers to switch to DLP projector production. TI's endeavors to standardize DLP projector specifications to lower entry barriers and production costs have also contributed to the shift towards DLP models. As a result, the share of Taiwanese projector shipments held by DLP models climbed to over 95% in the fourth quarter of 2004.

In terms of brightness, the volume of projectors 2,000 lumens and higher is gaining share, though 1,500 to 1,999 lumen models remained the mainstream in the fourth quarter of 2004, accounting for approximately 45% of total shipments. The distribution of shipment shares by resolution stood roughly the same sequentially, with XGA (Extended Graphics Array) still holding close to 50% of the Taiwanese projector shipment volume in the fourth quarter.

Looking towards the first quarter of 2005, shortage of key components seen at the beginning of 2004 is not likely to reoccur as Taiwanese makers shift more focus to DLP model production and as Japanese USHIO joins Philips and OSRAM in supplying lamps to Taiwanese players.

Nonetheless, first quarters have traditionally been the industry's slack sales season, therefore demand for home-use projectors is expected to weaken sequentially in the European and US markets. Taiwanese projector shipment volume is thus less likely to achieve high performances in the first quarter of 2005. Shipments of models 2,000 lumens and higher are anticipated to increase in share, while under the influence of notebook PC specifications, XGA models are projected to maintain the mainstream position in the first quarter of 2005.

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