DisplaySearch Report Reveals Q1'00 LCD Monitor, LCD PC, LCD and Controller IC Shipments, Market Share and Growth

Business Wire, June 29, 2000

Business Editors & High-Tech Writers

AUSTIN, Texas--(BUSINESS WIRE)--June 29, 2000

DisplaySearch, the leading source of market intelligence in the LCD monitor market, revealed Q1'00 worldwide LCD monitor, LCD PC, LCD panel and controller IC shipments as well as a rolling 8-quarter forecast in its latest Quarterly Supply Vs Demand Study: Desktop Monitors issued today. The report reveals that LCD monitor shipments rose 2% sequentially and 28% year-over-year (Y/Y) to 1.25 million units. A number of factors limited Q1'00 LCD monitor growth including CPU shortages affecting the bundled market, high street prices and significant channel inventories. Q1'00 LCD monitor revenues declined 4% sequentially but rose 48% Y/Y to $1.55 billion. This was the LCD monitor markets first sequential decline in revenues due to a 7% decline in ASPs and a 12% sequential decline in 18" shipments.

The Q1'00 LCD monitor market was led by the bundled LCD monitor market which rose 8% sequentially. The stand-alone market, on the other hand, fell 2% sequentially due to lack of demand at high street prices. Regionally, Japan fueled the Q1'00 market as its shipments rose 15% sequentially due to its traditional seasonal strength in the final quarter of its fiscal year. Shipments declined by double digits on a sequential basis in North America and Europe. As a result, Japan accounted for 54% of unit shipments and 48% of revenues. Japan's LCD monitor ASPs were the lowest of any region at $1095 due to its strong position in smaller monitor sizes. Japan was the world's largest market for 14", 15" and 15.4" displays.

By size worldwide, 15" LCD monitors rose 5% sequentially to account for 76.0% of Q1'00 worldwide shipments, up from 75.3% in Q4'99 and 63.8% in Q1'99. On a revenue basis, 15" LCD monitors fell 3% to $1.05 billion and a 67.5% share vs 66.5% in Q4'99 and 60.1% in Q1'99.

By supplier on a unit basis, NEC remained number 1 and boosted its share from 16.8% to 17.8% on 8% Y/Y and 7% sequential shipment growth. Fujitsu remained number 2 although its market share fell from 10.1% to 9.8%. Dell Computer was one of the biggest surprises in Q1'00 as it rose from number 6 to number 3 worldwide due to a 37% sequential and 437% Y/Y increase in shipments which boosted its market share from 4.2% to 5.4%. Dell benefited from a lack of channel inventories due to the benefits of its direct model and BTO manufacturing and distribution strategy. Sony and Mitsubishi remained number 4 and number 5 respectively. By supplier by size, NEC was number 1 at 14", 15.4" and greater than to 20", Fujitsu was number 1 at 15", Dell was number 1 at 17" and Eizo Nanao was number 1 at 18". Because of its leadership position at 18", Eizo Nanao rose from number 4 to number 3 on a revenue basis on a 24% sequential and 115% Y/Y growth which boosted its market share from 4.8% to 6.3%. By supplier by region, NEC was number 1 in Japan with a 24.9% share, Viewsonic was number 1 in the US with a 15.4% share and Philips was number 1 in Europe and ROW with shares of 15.6% and 16.0% respectively.

In the case of shipments by interface type, dual (analog digital) gained significant ground vs digital-only and analog-only LCD monitors. Dual shipments rose 306% to an 8.9% share vs 2.3% in Q4'99. Digital-only interface shipments, found primarily in Japan's bundled market, rose just 4% and remained at 28.2% of the worldwide market. Analog-only shipments fell from 62.9% to 61.6%.

The LCD PC market was rose 87% Y/Y but was flat sequentially at nearly 160,000 units. By supplier, Hitachi led the market with a 25% share. By size, 15" accounted for 92% of shipments.

Q1'00 panel shipments into the LCD PC and LCD monitor markets rose 23% Y/Y but fell 10% sequentially to 1.35 million units. Panel revenues rose 40% Y/Y but fell 11% sequentially to $945 million. The decline in panel shipments is a result of inventories at both the LCD monitor brands and OEMs. By supplier, LG.Philips LCD enhanced its market leading position on a 96% Y/Y increase in unit shipments and a 115% Y/Y increase in revenues. Its market share reached 18.1% on a unit basis, up from 11.4% in Q1'99 and 16.7% in Q4'99. On a unit basis, LG.Philips was followed by Sharp at 11.3%, NEC at 11.2% and Samsung at 10.2%. On a revenue basis, LG.Philips LCD led for the first time overtaking NEC. Its market share rose from 16.3% to 17.4% while NEC's fell from 16.4% to 13.68%. Sharp also moved past NEC by a slight margin with a 13.72% market share.

The controller IC market was also flat in Q1'00 with 1.2% sequential growth to 1.5 million units. Genesis Microchip regained some of the market share it lost in Q4'99 as its share rose from 28% to 31%. Sage maintained a 23% share while SmartASIC's share jumped from 14% to 16%.

Looking forward to Q2'00, DisplaySearch's multi-industry survey revealed that LCD monitor manufacturers are projecting 12% sequential shipment growth while panel manufacturers and controller IC manufacturers are projecting 18% growth fueled by lower street prices.