Record drop in LCD prices

Prices for 10-inch and larger LCD monitors fell to less than $300 in the second quarter in the United States--a record 28.4 percent drop compared with the same quarter last year--according to new report from market researcher DisplaySearch. The steep drop in price led to a 40 percent boost in shipments for the quarter, compared with the same period last year. Shipments in the third quarter are predicted to increase by 30 percent because of an expected 13 percent price drop. Continued price drops are forecast through November but will eventually flatten out in the beginning of next year, DisplaySearch said.

Prices for smaller LCDs used in cell phones, handhelds and digital cameras also fell in the second quarter, by 15 percent, 9 percent and 8 percent, respectively. That trend is expected to reverse for cell phones in the third quarter, when prices are expected to increase by 11 percent. In the fourth quarter, however, prices for LCDs for cell phones are expected to fall by 5 percent.