Competition, price shake up monitors

Competition, price shake up monitors

Analyst firm IDC says a recovery in local monitor shipments in the second quarter has come at a cost for vendors as prices fall.

“A lengthy economic recovery from recession has resulted in a price-sensitive environment that has forced vendors to lower prices to meet sales targets. In the short term, falling prices are expected to have a positive impact on the sale of monitors,” says IDC analyst Arunachalam Muthiath.

Other than declining prices, an improving economy and the growth of LED (light emitting diode) monitors are responsible for a growth in shipments for the quarter, says IDC.

The local PC monitor market grew 27 percent sequentially and 15 percent year-on-year.

“With LED technology gaining more traction and the economy expected to improve in the long run, vendors are anticipated to hold on to prices to improve their revenue margins.”

Both the bundled and non-bundled monitor categories posted shipment gains for the quarter, but the non-bundled space grew more significantly, Muthiath says, adding this was due to deals closed in the commercial sector.

HP took first place over Dell this quarter, and Muthiath says one reason was strong deals made in the commercial market.

HP didn’t provide comment for this story before Reseller News went to press.

Following Dell in second place was Viewsonic, which has held the number three ranking for two sequential quarters. Philips took fourth spot from Acer, for which IDC also cites strong commercial deals. Acer fell to fifth while Samsung came in at number six.

Viewsonic ANZ country manager William Tse says the vendor hasn’t had to lower prices to remain competitive.

“We have had very good growth in New Zealand because we have diversified our range and continued what we’re good at, rather than slashing prices to keep meeting price points. We did try to cut prices in the past but we’re never going to be the cheapest in the market. There are too many cheap alternatives out there.”

According to Tse, monitor prices have been dropping for the past three years prior to the recession.

“The average selling price today is 30 percent less than it was three years ago. Technology price drops are inevitable and that will be an ongoing trend.”

He agrees with IDC that LED technology has become more popular with buyers.

“We have changed from CFL [compact fluorescent lamp] to LED and we’re expecting to introduce revamped models with LED backlighting. We want to stay ahead of the game, because LED has advantages such as energy savings.”

Via its distributors Synnex and Dove Electronics, Viewsonic received repeat business from the corporate and education markets, says Tse.

He disagrees with IDC’s analysis that vendors will hold on to monitor prices to improve margins, as the prices are influenced by global events.

“Any increase in manufacturing costs will impact the price of monitors. But we don’t anticipate the GST increase [in October] greatly affecting our local business. So far for Q3 we are on track to maintain the number-three position.”

Acer marketing manager Robin Tang says in comparison to Australia, the monitor market here is smaller, so is subject to changes such as consumer buying habits. He would not comment on falling prices or why Acer slipped to fifth spot from fourth in Q1.

“Acer had a huge quarter one, but HP was the clear gainer in Q2.”

Top six monitor vendors,Q2, 2010

1 HP

2 Dell

3 Viewsonic

4 Philips

5 Acer

6 Samsung

Follow Us

Join the newsletter!


Sign up to gain exclusive access to email subscriptions, event invitations, competitions, giveaways, and much more.

Membership is free, and your security and privacy remain protected. View our privacy policy before signing up.

Error: Please check your email address.

Tags DellIDCSynnexviewsonicDove Electronics



Show Comments