December 18, 2001 10:40 AM PST

LCD shipments skyrocket in Asia

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By Irene Tham

SINGAPORE--The adoption of liquid-crystal displays in the Asia-Pacific region will increase fivefold this year, driven primarily by recent price reductions.

About 1.73 million LCDs will be shipped this year, compared with 337,400 last year, according to market researcher IDC. The figures exclude Japan.

This rise is "spurred by prices falling on an average of 56 percent over the course of the year," said Manny Lopez, an IDC Asia Pacific analyst.

The 15-inch LCD monitors, selling at an average of $380 in the region, have been the most popular, Lopez said. These entry-level monitors are mass-produced, especially by manufacturers in Taiwan and Korea, he added.

"Furthermore, PC vendors are increasingly bundling LCD monitors with their computers, thus dramatically driving up adoption," Lopez said, citing China's largest PC maker, Legend, as an example.

"Given the current tough PC market conditions, many vendors throughout the region are looking to differentiate themselves from their competitors. And with the recent price drops in LCDs, bundling these monitors with PCs is an effective way to make their products more attractive."

Lopez expects China to lead the LCD market this year, with about 30 percent of the market--or 500,000 units--compared with just 11,000 units last year.

Despite gains in the region, this year's LCD shipments will constitute just 8 percent of the total monitor market, with the remaining 92 percent made up by cathode-ray tube (CRT) monitors.

About 19.8 million CRTs shipped last year, IDC said, and 20 million will ship this year. That's because of the many "price-sensitive" buyers in the region, including in China, India and the Philippines, Lopez said.

Next year, IDC expects LCD monitor sales in the region to rise 78 percent, hitting 3 million units. China and Korea will lead the region, with growth rates of 84 percent and 200 percent, respectively.

Staff writer Irene Tham reported from Singapore.

 

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