PC Monitor Market Sales Continue to Dip
NORTH SYDNEY – NOVEMBER 8, 2001 – IDC releases the Australian PC Monitor Market results for the 3rd calendar quarter (July-September) of 2001, which indicates that CRT and LCD sales have taken another beating. This was largely influenced and dragged down by the decline in PC sales during the same time period of 38,603 units, or 7 percent.
Reuben Tan, IDC Market Analyst, mentions "The total monitor shipments in the third quarter of 2001 was 388,149 units, a decline of 9 percent over 2Q 2001, and reflecting a remarkable 29 percent year-on-year downturn from 3Q 2000. The total Australian monitor market certainly isn't looking good, and is now going through its fourth consecutive quarter-on-quarter decline since sales peaked in 3Q 2000."
"The closed market was joined by the open market this time around, which together caused the decline in total monitor sales. Sales of PCs from most global vendors remained weak in 3Q 2001, affected not only by the September 11th events, but a downturn in the Australian corporate economy amidst the withdrawal of Gateway from the local market, and the collapse of several major institutions including Ansett, HIH and One Tel. These local companies, having a sizeable influence over the Australian public, meant that the sentiments filtered down to the open monitor market as smaller resellers, system integrators and retail outlets felt the brunt of the slowdown. Consequently, closed market monitor shipments fell 14,443 units, or 8 percent, while open market sales fell 21,904 units (9 percent)."
IDC believes that vendors were pressured to lower prices yet again in an increasingly commoditised and price-competitive market, especially given faltering demand; however many vendors did not have room to move, as poor exchange rates continued to drive vendor margins down. Although some vendors managed to hedge procurement of new stock at reasonably favourable rates (52-53 US- per AUD), others were caught out as the Australian dollar started on another downward slide.
"The saving grace of Q3 was the host of new models which many vendors brought to market, tempting an audience which had just obtained their tax refunds either as an individual, or an SMB which had allowed the Government to work out their GST portions beforehand. On the flip-side, prices remained fairly stable, to reflect little movement in production costs, as well as the weakening exchange rate. Any downward price movements were therefore simply based on competitive strategies."
"IDC anticipates that the final quarter of this year will not exhibit the strong year-end consumer/retail uptake of traditional Q4s, but instead will be dampened by cautious individuals putting aside their uncertain income, and corporates waiting for true incentives to undertake spending and infrastructure rollout. However, based on IDC's latest end-user research, the Federal Election is not anticipated to make much of an impact on buying decisions during the quarter. Prices, having remained relatively flat in Q3, are slated for another reduction in Q4 as competition in both the CRT and LCD market remains fierce. All up, Q4 should be a stronger quarter than Q3 given the seasonalities of PC purchasing which this industry is tied to."
"Vendor-wise, Mitsubishi, LG Electronics and Samsung took out the top three positions respectively for the total open market, with Philips having a record quarter that bumped it to fourth position. Viewsonic was relegated to fifth this time around as the channel found itself with enough stock. The gap in market share between top five vendors was much more distinct this time around, with Mitsubishi capturing 17.5 percent of the open market, LG Electronics at 12.7 percent, Samsung with 12.3 per cent, Philips with 10.6 percent and Viewsonic with 8.9 percent. The top five vendors together accounted for 61.9 percent of the total open market for 3Q 2001."
Likewise in the CRT open market, Mitsubishi was the top selling vendor to the channel, with 18.2 percent of the open market, with LG in second position (13.3 percent) and Samsung in third (12.0 percent). LCDs were a different story; Samsung and NEC, with 15.5 and 12.9 percent of the LCD open market respectively, pulled away as the leaders of this newly popular form factor- testament to Samsung's strong marketing drive for the 560V 15' LCD. Acer was third (at 10.3 percent) with their competitive FP563 15' model, while previous leader Panasonic languished at 10th position with a mere 3.3 percent of the LCD market.
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 local and 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 world's leading IT suppliers, IT organisations, eBusiness companies and the financial community. Additional information can be found at http://www.idc.com.au