"Free" PCs Breathe Life Back Into the 15-Inch CRT Monitor Market; Stanford Resources Forecasts that the Worldwide CRT Monitor Market Will Be Healthy Through 2005 - Industry Trend or Event

Edge: Work-Group Computing Report, Oct 25, 1999

Stanford Resources, Inc., the most experienced market research firm specializing in the global electronic display industry, reported that a healthy future is in store for the CRT monitor market through 2005.

According to Monitor Market Trends 1999, Stanford Resources' comprehensive report on the worldwide CRT monitor market, this market will grow from 106.3 million units, valued at $19.2 billion, in 1999 to 151.3 million units, valued at $23.5 billion, in 2005.

Rhoda Alexander, senior market analyst at Stanford Resources, explained, "The continued expansion of this market is in part due to significantly lower prices than competing LCD monitors, manufacturers' efforts to reduce CRT tube depth and improve performance, and growing demand for the higher-profit larger screen sizes. However," noted Ms. Alexander, "the recent introduction of low-cost and free PCs has somewhat arrested the normal upward screen-size trend, fueling demand for 15-inch units and even prolonging the life of the 14-inch monitor market." According to Monitor Market Trends 1999, sales of 15-inch monitors surpassed sales of 14-inch dis-plays in 1997 and will lead in unit shipments until 2000, at which time 17-inch displays will take the lead. The $100 price difference between 15- and 17-inch displays has prevented 17-inch units from being sold to the low-cost/free PC market. This shift in PC pricing has had a major impact on the display industry and is one of the short-term challenges facing CRT monitor vendors.

"The major challenge for the CRT monitor market -- flat panel display penetration -- is being held back by the significantly lower costs of CRT monitors. The average street price for a 15-inch TFT-LCD monitor in mid-1999 was nearly $1,200, compared to an average price of $334 for a 17-inch CRT monitor," stated Ms. Alexander.

"Moreover," noted Ms. Alexander, "efforts to decrease the footprint of the CRT monitor have accelerated in reaction to the threat of flat panel display alternatives. Short-neck tubes reduce the depth of a 19-inch monitor to that of a 17-inch monitor. This marks a major improvement in CRT monitor design."

The demand for 19-inch monitors will in fact accelerate during the forecast period. Most leading tube vendors, including Philips, Hitachi, Samsung, LG Electronics, Mitsubishi, Sony, and Matsushita, have already committed to this market. The North American market, which has ample desk space, is the largest market for 19-inch displays and will continue to dominate throughout the forecast period. The market for 19-inch desktop PC monitors will surpass 15-inch monitors in 2005, with shipments of 33.4 million units.

The detailed forecast in Monitor Market Trends 1999 presents data on a worldwide basis and also by individual geographic regions: North America, Europe, Japan, Far East, and the Rest of the World. Within each region, the data is segmented by technology, application, and screen size and is presented in terms of units, average selling price, and market value. The forecast data is provided for the following product attributes: color/monochrome, screen size, tube type, resolution, and pixel format. Special breakdowns are shown for the desktop PC monitor segment, the largest market for CRT monitors.

Monitor Market Trends 1999 also includes a review of technology issues related to CRT monitors, including a discussion of new and potentially significant technologies. A strategic analysis emphasizes trends in monitor production, major suppliers, regional issues, and barriers to market growth. Worldwide supplier market shares are shown for major CRT monitor manufacturers. Current CRT monitor supplier and major integrator profiles are included in the report, covering production plans and long-range target markets.

Each copy of Monitor Market Trends 1999 is shipped with a companion CD-ROM. The CD-ROM features an interactive version of the Monitor Market Trends 1999 database, which allows users to utilize the forecast to create customized analyses. A tutorial and a demonstration of the proprietary database are also included on the CD-ROM, along with an electronic version of the report.

Stanford Resources publishes numerous annual and quarterly reports on the electronic display industry, including Flat Information Displays, Flat Panel Monitor Market Trends, Flat Panel Monitrak, Global LCD Supply/Demand, Liquid Crystal Displays, Monitrak, Projection Displays, and Television Systems.

Additionally, Stanford Resources provides a wide range of management consulting services, including market research and analysis; technology assessment; market plan preparation; manufacturing process evaluation; and evaluation of intellectual property, including patents. The firm will host the 16th Annual Flat Information Displays Conference on December 16 and 17, 1999 in Monterey, California. FMI: http://www.stanfordresources.com.