Australian PC Monitor Market Sales Shrink for the 3rd Consecutive Quarter
NORTH SYDNEY – SEPTEMBER 7, 2001 – IDC releases the Australian PC Monitor Market results for 2Q 2001, showing that sales in the Australian monitor market shrank yet again during the calendar 2Q 2001 period, despite an increase in total PC sales of 48,779 units.
Reuben Tan, IDC Hardware Analyst, said,The Total monitor shipments in the second quarter of 2001 was 424,905 units, with a decline of 3.0 percent over 1Q 2001. There has been a year-on-year downturn of 20.2 percent over 2Q 2000. This means that the monitor market has suffered from its third consecutive quarter-on-quarter decline since sales peaked in 3Q 2000.
The closed market was the main culprit for the decline in sales, as sales of most global PC vendors took a dive in 2Q 2001 resulting in closed market monitor shipments falling by 27,392 units, or 12.5 percent.
The open market however kept the monitor market alive, increasing by 6.5 percent to 233,229 units, as white box PC vendors and resellers made full use of low component prices to stamp their presence on the Australian PC scene by offering competitively priced systems. The retail, SI and direct channels also saw similar increases in volume as the upgrade market remained relatively buoyant.
IDC believes excess inventory caused by over optimistic procurement resulted in vendors trying their best to slash prices in order to move stock, but many vendors were unable to do so given that prices had already been significantly reduced in 1Q 2001. Instead, vendors who had stuffed their channels with not only monitors but other products as well, resorted to promotions and giveaways of these excess products as attractions to snare wary customers.
Poor exchange rates served to drive margins down, as the Australian dollar stabilised and hovered around a rather unfavourable rate of .52? to the US dollar. However IDC predicts that increasing competition in both the CRT and LCD space will result in another price cut for the 3Q 2001 period, despite LCD panel prices stabilising over the last two months.
Many monitor buyers were waiting for Q3 to make their purchases, when vendors are poised to release a slew of new models, as well as cut prices on existing models. Small businesses who let the Government work out their GST portions are also due to receive tax refunds during this period, which will give most of these businesses a handy sum for a PC or monitor upgrade. IDC anticipates that buying seasonality is set to change, as these factors may combine to make Q3 (the traditionally slowest quarter of the year) pip 2Q 2001 in sales.
Vendor-wise, Samsung, Mitsubishi and Viewsonic took out the top three positions for the total open market, surprisingly pushing LG Electronics into number fourth position, and Philips to number five. However the top five vendors were extremely closely placed in terms of market share this time around, with Samsung capturing 15.5 percent of the open market, Mitsubishi at 14.8 percent, Viewsonic with 14.2 per cent, LG with 13.7 percent and Philips with 13.3 percent. The top five vendors together accounted for 71.6 percent of the total open market for 2Q 2001.
In the CRT space, Samsung emerged as the top selling vendor with 15.6 percent of the open market, with Mitsubishi in second position (15.2 percent) and Viewsonic in third (14.6 percent). Similarly both Samsung and NEC, with 13.1 and 12.7 percent of the LCD open market, overtook Panasonic (12.3 percent) for top spot in LCD sales, with Philips coming in at the number four position with 11.8 percent.
IDC is the foremost global market intelligence and advisory firm helping clients gain insight into technology and ebusiness trends to develop sound business strategies. Using a combination of rigorous primary research, in-depth analysis, and client interaction, IDC forecasts worldwide markets and trends to deliver dependable service and client advice. More than 700 analysts in 43 countries provide global research with local content. IDC's customers comprise the worlds leading IT suppliers, IT organizations, ebusiness companies, and the financial community. Additional information can be found at www.idc.com.au