LCD screen prices set to fall

Slowdown is dales could lead to oversupply late this year, says analyst

The price of LCD notebook and desktop displays could fall late this year because of a slowdown in the market, according to analysts Meko.

Research director Pete Gamby said shipments to shops and distributors fell by 13 percent the first three months of this year compared with the same period in 2007.

Worst hit were shipments to distributors, which fell by up to 30 percent, though the figures are distorted by the fact that early 2007 was a bumper sales period due to low sales.

Another factor was that falling prices accelerated the transition from cathode-ray monitors. Gamby agreed that this replacement market was drying up.

"Manufacturers never learn that if you sell people LCD monitors, and tell them they will last longer, they are not going to buy new ones for years," he said.

Figures for the first three months of this year are still tentative, as data is still coming in. But early indications are that a tight supplies currently will move to oversupply later in the year.

"If sales in the LCD TV market do not progress as expected, prices in both the notebook and desktop monitor market could come under downward pressure in the latter part," he said.

The reason is that panel makers would switch manufacture into those products in order to keep factories going.