Large-sized LCD prices fall in August

LCD panels used in desktop PC monitors have suffered steep declines, with pricing for 15- and 17-inch panels for this application dropping by 18 to 19 percent in August compared to July, according to iSuppli Corp.

The major factors driving the price decreases were the rising availability of panels, due to increased production at several new fifth- and sixth-generation fabs, plus slow monitor and TV sales in July and August. This has contributed to a build-up of LCD monitor inventory at the ODMs and among the panel suppliers.

In order to clear out their inventories, some desktop PC monitor makers have begun to offer aggressive prices for 15- and 17-inch models.

The low-end street price for 17-inch desktop PC monitors fell to the $350 level by the end of August, while most products were priced in the $400 to $450 range.  The low-end price 15-inch monitors reached the $300 point in August, but many products were in the $325 to $375 range.

Nonetheless, the average price of the 17-inch unit has not declined to the all-important $300 to $350 level, which would boost monitor demand, especially during the upcoming holiday season.

For the first time ever, the average panel price for 30/32-inch LCD TVs in August fell below the $900 price point to $876. They are expected to decline by another 10 to 15 percent during the next few months.

Strong demand for monitor panels will resume in the fourth quarter, driven by lower street prices and by increases in holiday sales. Because of this, supply and demand will return to equilibrium-or a tight supply situation will re-emerge.

The issue of LCD pricing will be discussed further at the iSuppli Flat Information Displays (FID) 2004 event in San Francisco on Nov. 18 and 19. For more information on FID 2004, please visit www.isuppli.com/fid/index.asp