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Monitor Glut Kills Prices

9/16/2010 09:10:31 AM Eastern

El Segundo, Calif. - PC monitor prices are plummeting due to an oversupply situation, said the research firm iSuppli.
Factory prices have fallen 25 percent over the last three months, from their highs last march, said Rhoda Alexander monitor research director.
The 16:9 aspect ratio models have suffered the steepest declines, while price drops on the 16:10 SXGA varieties have been more moderate. However, the factory price drops have not been reflected in street prices yet, but this could change as the factory price reductions are just starting to hit the retail level, Alexander said.

iSuppli Figure: Desktop and Workstation
Monitor Supply Chain Shipments (Thousands of Units)
         
  Q3 '09 Q4 '09 Q1 '10 Q2 '10
Panels Shipped 52,367 48,580 49,748 53,700
Manufactured Units 47,794 45,104 46,434 47,265
Branded Shipments 45,839 46,869 46,020 44,492
End-User Sales 41,728 45,196 42,019 41,329
         
Source:
iSuppli Corp. September 2010
   

 

The upcoming street-level price drops will spur a huge rebound in fourth-quarter monitor sales as consumers take advantage of low prices and begin to scoop up monitors during the holiday season.
The monitor glut was caused, in part, by slow consumer demand during the first two quarters of 2010. iSuppli estimated that production exceeded consumption by 11 percent during the first half of the year. However, the accumulated inventory has forced order cutbacks, which should help the industry avoid the monitor glut that took place in 2008, the company said.
iSuppli is predicting monitors 23 inches and larger will experience the highest price cuts during the holiday selling season with LED backlit models offering vendors and retailers their best opportunity to boost margins.
On the downside, the ongoing consumer trend toward portable computers will continue to create a challenging atmosphere or the traditional PC monitor market.