Sales of retail LCD monitors increased by 70 percent year-over-year, setting an all-time record, according to market research firm Current Analysis. The growth, according to the report, was fueled by declining prices and increased promotion by LCD manufacturers.
For the first time, 19-inch LCDs outsold the 15-inch models in the third-quarter of 2005, the report found.
Pricing for LCD monitors dropped by an average of 36 percent year-over-year — leading the declining prices was the 19-inch model, which dropped by 42 percent. The report cites an industry-wide component oversupply, which lasted from Q2 2004 through Q1 2005, as the reason for the price reductions.
However, analysts warned not to expect the trend to continue at the current rate moving into the fourth-quarter.
“Year-over-year growth for the fourth quarter will be more modest than that of the third (quarter), as the fourth quarter was 2004’s most successful,” said Christian Dias, Displays Analyst for Current Analysis. “While the year-over-year growth will not be as dramatic as what we saw in Q3, the monitor market’s momentum will ensure that Q4 unit sales will be higher than those of Q3, thus setting another new record.”
Promotional activity increased by 76 percent year-over-year, a trend analysts expect to continue into the upcoming holiday season.