Austin, Texas - DisplaySearch reported LCD monitor production in January hit its highest point in 18 months.
The research firm said 12.5 million LCD monitors were produced last month by the top PC and monitor brands, representing about 85 percent of the total production run for the month. In addition, early indications point to about 12.9 million LCD monitors being produced in March.
Chris Connery, DisplaySearch's personal computer displays VP, said these figures can be considered leading indicators for how the market will behave in the near future. However, he would not go so far as to state that January's increase meant end-user demand was necessarily increasing. Most of the demand, he believes, is heading into the B2B channel as IT departments enter a heavy replacement cycle.
Connery explained the uptick is likely due to monitor vendors building up supply as a hedge against possible upcoming price increases in LCD glass. These would be caused by the continuing strong demand for LCD TVs worldwide.
Other facts that do not point to an increase in consumer demand are the continued weak demand for monitors in China and that notebook computers dominate the category, which brings into question where the sudden demand for desktop LCD monitors is coming from, Connery said.