19-inch & above LCD PC monitors

	The W9008S from mainland China's Shenzhen KTC is a 19in 16:10 LCD monitor with 700:1 contrast ratio.

Home sector and strong LCD market growth catalysts; multimedia capabilities enhanced in new releases

2008 could be the breakout year for widescreen LCD monitors in Greater China, with the line primed to step out of a minority status to take up a larger portion of the overall LCD monitor market and start influencing product development trends. 19in models have already made significant inroads in Greater China, and now the focus of makers is increasingly on 22in models and larger. Suppliers in South Korea are even looking at 24in and larger monitors, and some makers have released 24in models.

Rich multimedia capabilities provide the platform for growth for widescreen monitors, as these make the product highly suitable for the flourishing digital home market. The strong market performance of LCD monitors, which are forecast by the IDC to experience a 2.3 percent CAGR from 2007 through 2012, likewise provides a boost. IDC cites the Asia-Pacific region as the most promising market, followed by Europe and the US. IDC predicts that from 162 million LCD monitor units shipped worldwide in 2007, the number will go up to 179 million units in 2008, 191 million units in 2009 and 200 million units in 2010. Of the total LCD monitor shipments, the share of widescreen LCD monitors with 16:9 or 16:10 aspect ratio is climbing as opposed to standard models with 4:3 aspect ratio. Largely, the home market and multimedia trends drive this transition, but the enterprise sector is predicted to eventually convert as well.

Positive market projections for widescreen LCD monitors ride further on the continued slide in the cost of LCD panels, which accounts for up to 70 percent of product cost, and burgeoning multimedia content. Windows Vista, HDTV and gaming will be also key growth catalysts.

Upstream, LCD panel suppliers are pushing widescreen LCD monitors up the food chain mainly due to the glass efficiency and more economical cut afforded by widescreen (16:9 and 16:10) over the standard cut (4:3). Furthermore, 16:9 panels can be more efficient than 16:10 panels. For instance, a G6 substrate can be cut into 24 pieces of 19in 16:9 LCD panels or 20 pieces of 19in 16:10 LCD panels.

Taiwan's supplier population for this line includes first-tier companies, such as Qisda Corp., TPV Technology Ltd, Amtran Technology Co. Ltd, Lite-On IT Corp., Tatung Co. and Chi Mei Optoelectronics (CMO), which are subcontractors for leading LCD monitor brands such as HP, Dell, Acer, ViewSonic, Philips and Samsung.

Taiwan's LCD monitor supplier base will continue to be stable in the months to come. However, the appreciation of the yuan and stiff price competition will challenge makers' business. Some companies already predict price increases later this year in response to climbing production cost. For medium-scale suppliers, the dominance of large players in the mainstream, plus price undercutting from mainland China makers, will provide compelling reasons to move toward the industrial LCD monitor category, which promises healthier margins.

In mainland China, most of the 150 suppliers of LCD monitors carry widescreen models in their product line. Leading makers on the mainland include China Great Wall Computer Group Co. Ltd and HKC Group. About 50 percent of the manufacturers in mainland China are concentrated in Guangdong province, particularly in the cities of Shenzhen and Guangzhou.

South Korea has 70 suppliers of LCD monitors, led by Samsung Electronics and LG Electronics. Other large players in the region include BTC Korea Co. Ltd, Daewoo Lucoms Co. Ltd, PC Bank 21 Co. Ltd, Trigem Computer Inc. and Orion Communications Co. Ltd.

South Korea's LCD monitor industry has been experiencing rapid growth in both the domestic and international markets. The launch of Windows Vista in early 2007 partly fueled the uptick: In Q1 2007, 19in widescreen LCD panels showed a 426 percent growth over Q1 2006, or 6.26 million units in Q1 2007 over 1.18 million units in Q1 2006. This reflected a shift in application for LCD monitors from work-related activities to multimedia functions.

Meanwhile, cutthroat price competition and volatile panel supply have forced many Hong Kong suppliers to stop producing LCD monitors and shift to other products. Even the remaining suppliers are reducing emphasis on LCD monitors, while exploring other more promising, higher-margin products such as LCD TVs. There are additional suppliers that cater to niche applications such as advertisement and point of information (POI) displays. Other small suppliers are content to engage in trading LCD monitors produced by Taiwan or mainland China manufacturers.

The downtrend in Hong Kong is not expected to turn around in the coming months. The region's two major suppliers—Proview International Holdings Ltd and South China House of Technology Consultants Ltd (SCHOT)—are both busy ramping up their output of LCD TVs.

As global widescreen LCD monitor manufacturing further consolidates into a few Taiwan- and mainland China-based suppliers, more Hong Kong suppliers will be pushed out of the line. Only Proview has a long-term prospect in LCD monitor production, while SCHOT will be more dependent on its LCD TV business.

Widescreen models currently account for a small percentage of the LCD monitor shipments in mainland China and Taiwan, but suppliers are confident the line's share will continue to rise in the coming years. This uptrend will be boosted by several factors, including increasing multimedia content and applications.

Units with widescreen aspect ratio have only about 40 percent share of Taiwan's LCD monitor shipments. In 2007, standard aspect ratio models dominated Taiwan's supply. This was because makers' shipments were mostly targeted at the enterprise/professional market, which still favored the standard aspect ratio. Widescreen models began penetrating the market through the home/consumer segment.

This year, Taiwan makers expect widescreen models to take up a larger share of the island's LCD monitor shipments. IDC reports that the shift to widescreen is gathering momentum, with 19in and 22in widescreen models already in rising supply.

Macro Power Technology Co. Ltd, for instance, projects that the share of widescreen LCD monitors in its overall shipment will rise to 50 percent this year from 20 to 30 percent in 2007. Macro Power's catalog also includes IPCs and educational monitors for children. The company said, however, that widescreen panels have yet to be adopted for IPCs. For its educational monitors, the company plans to integrate touchscreen function.

In mainland China, widescreen LCD monitors have a 50 percent share of total LCD monitor shipments. Suppliers forecast a significant growth in the share of widescreen models in the coming months.

In Hong Kong, where a market slump has left only five surviving players, widescreen 19in models have taken over the mainstream. Industry watchers in Hong Kong predict even larger models will start making inroads in the next few months.

As of Q3 2008, widescreen models already dominate South Korea's LCD monitor market, with 24in and bigger sizes in the mainstream. The region's production of widescreen LCD monitors started climbing in 2007, when applications for LCD monitors started expanding to cover not just work and computing but also multimedia and entertainment.

In Asia and worldwide, the swing toward large screens will be fueled by the rising supply of large LCD panels. Market research firm iSuppli predicts a 17.7 percent increase in global shipments of large LCD panels this year—from 389.8 million units in 2007 to 458.9 million units by end-2008. This rise in shipments will be driven by strong demand from the computer monitor, laptop and flat-panel TV sectors, according to iSuppli.

19in widescreen models make up a large percentage of supply in Greater China and South Korea, but global trends toward larger screens will push 22in—and larger—models into the mainstream.

Taiwan's Macro Power is among the companies transitioning from 19in to 22in. The company also offers 24in units. Another Taiwan maker, Sinai Technology Co. Ltd, has 19in to 26in widescreen models in the pipeline. Units with large displays have default TV tuners.

ViewSonic Corp., which highlights green technology, offers 22in green LCD monitors that feature power-saving LED backlights. Its VLED221wm meets Energy Star requirements and consumes only 36W, saving 10 percent power compared with CCFL-backlit monitors.

Mainland China's shipments are still dominated by 19in models. However, most makers' marketing efforts highlight 22in models, indicative of the region's ongoing shift to 22in widescreen LCD monitors. Shenzhen KTC Computer Technology Co. Ltd, for example, supplies 13in to 22in LCD monitors, with the bigger models having widescreen displays.

Mainland China FOB prices for 19in widescreen LCD monitors usually range from $140 to $180 per unit. 22in models are priced at more than $200 per unit. Many makers predict a price dip in the next 12 months, mainly due to the downward trend in the prices of LCD panels. On the other hand, there are also some makers, such as Shenzhen KTC, that forecast a short-term price increase prior to the Christmas season.

In South Korea, 22in models are staple, but the focus is increasingly on 24in LCD monitors. Univision Display Co. Ltd offers the UNI240WG-Full HDTV, a 24in widescreen LCD monitor that features full HDTV with 1920x1200-pixel resolution. It supports HDMI and HDCP. It has 6ms response time, 30,000:1 contrast ratio and 500cd/m² brightness.

Orion Communications Co. Ltd also launched a 24in widescreen LCD monitor, the OR2406HTV, which features a built-in HDTV tuner. The model supports D-Sub/DVI, component and composite terminals, SPDIF, S-video and HDMI. Its dynamic contrast ratio is 30,000:1 and brightness is 400cd/m². The model also has two built-in speakers with 5W audio output.

Makers in South Korea see the high price of 24in models as the biggest barrier for market adoption. As of press time, 22in widescreen LCD monitors in South Korea had retail prices ranging from $250 to $400 per unit, as against $350 to $500 for 24in models. The price gap, however, has been thinning and is expected to continue narrowing in the coming months.

Widescreen 19in models lead the supply of LCD monitors in Hong Kong. Proview's VisBoard tablet monitor is a 19in model featuring electromagnetic technology and handwriting recognition. It allows a pressure-sensitive pen to be used instead of a mouse to directly write or draw on the screen.

SCHOT offers 17in to 27in LCD monitors. SCHOT's mainstream 19in LCD monitor is available in Ultra Slim, Shiny and Super Glass series, with each series having a distinctive housing and external design. The UL1929W ultra-slim 19in widescreen LCD monitor supports 1440x900-pixel resolution, 300cd/m² brightness, 700:1 maximum contrast ratio and 5ms response time. VGA and DVI inputs are incorporated.

Suppliers generally up the ante in multimedia features to complement the better viewing capabilities of their widescreen LCD monitors.

South Korea makers are differentiating their products from low-priced models focused on basic PC applications by strengthening high-end value-added multimedia functions such as HDTV, HDMI and HDCP support. Most widescreen LCD monitors from South Korea support full HD, D-Sub/DVI and HCDP. High-end models incorporate HDMI, composite and component ports, SPDIF and TV tuners. Models with TV tuners all have built-in speakers. In terms of external design and movement, the bulk of South Korea's widescreen LCD monitors can be tilted, and high-end models can be pivoted, swiveled or elevated.

High-end widescreen LCD monitors from Taiwan, which typically measure 24in and 26in, are designed to function as small TVs or monitors for graphic designers. Thus, TV tuners have become the norm for this segment.

In addition to the tuners, the units are equipped with USB hubs, HDMI, Web cameras and LED backlight. A growing number of makers are also increasing their products' audio output to 8W or 10W and enhancing energy efficiency.

High-end widescreen LCDs from mainland China feature high contrast ratio and brightness, faster response time and wider viewing angle. Some models feature up to 4000:1 contrast ratio, 2ms response time and 175-degree viewing angle.

Meanwhile, mainstream widescreen LCD monitors from mainland China have 700:1 to 1000:1 contrast ratio, 5ms response time, 300cd/m² brightness, 160- or 170-degree viewing angle, and more than 40W power consumption. They are also generally compatible with Windows XP and Vista OS. Some models integrate DVD player and built-in speakers. HDMI, DVI, VGA and USB are optional.

Guangzhou ViewG Sci-Tech Co. Ltd's LCD monitors range from 15in to 22in, and the company offers 4:3 and 16:10 models. The company's product development focus for its widescreen LCD monitor line is on multifunctionality, represented by built-in DVD players and cameras.

Several South Korea widescreen LCD monitor makers are targeting niche markets, such as DID or medical products, to broaden their market reach.

BTC Korea Co. Ltd, for instance, classifies its widescreen LCD monitors into three categories: general PC use models, medical widescreen LCD monitors and digital information display (DID) models. The medical monitors require higher resolution than consumer models, according to Bumsu Kim, general manager at the company's planning department. BTC's medical models support a resolution of 2MP to 5MP—twice to three times the resolution of general PC monitors.

Meanwhile, most of BTC's DID products are customized according to client requirements. The company grows its DID business through developing its own technologies and solutions, including hardware, software and firmware technologies, as well as beefing up its aftersales support. BTC has an in-house cosmetic design team and external design house partners.

BTC is expanding its product development projects to 3D and touchscreen monitors. Widescreen LCD monitors that support advanced HDMI—up to HDMI 1.3—are also in the pipeline.

	Great Sun of Taiwan offers the Sun-22SGB, a 22in widescreen monitor with 1180x1050 full HD resolution, as well as built-in analog and digital TV tuner and speakers.

The key production processes for widescreen LCD monitors include SMT, PCB design, mold making, plastic injection molding, assembly and testing. Some makers purchase PCB boards (in LCD monitors, called A/D boards) from PCB design companies, while others have in-house capacity to produce these. Regardless of makers' production capacity and strategy, a growing number of companies expect their output volume for widescreen LCD monitors to rise this year.

Mainland China is the locus of production activity for widescreen LCD monitors, although some Taiwan and South Korea companies continue to maintain facilities in or near their headquarters.

Interviewed Taiwan manufacturers continue to conduct production in Taiwan. Great Sun Tech Corp. also has factories in mainland China, aside from one in Miaoli, Taiwan. The company ships an average of 60,000 LCD monitors per month. It expects widescreen models to account for 65 to 70 percent of its total LCD monitor output this year, up from 50 percent in 2007 and 14 percent in 2006.

Sinai's factory in Taipei is expected to double its output of widescreen LCD monitors this year. Sinai ships about 3,000 widescreen monitors a month. Widescreen LCD units accounted for 20 percent of Sinai's total shipments in 2007, and the company says the figure will climb to 40 percent this year.

Shenzhen Sanmeng Digital Technology Co. Ltd estimates its widescreen LCD monitor output this year will rise by at least 20 percent. The company shipped about 200,000 LCD monitors in 2007. It has a monthly production capacity of 20,000 units.

Shenzhen KTC has an annual production capacity of 5 million units. In 2007, the company shipped about 2 million LCD monitors, at least half of which were widescreen models.

ViewG Sci-Tech's monthly production capacity for LCD monitors is 20,000 units. In 2007, the company shipped an average of 13,000 units per month.

In South Korea, Univision has been manufacturing its own A/D boards and supplying these as well to major monitor makers in the region and overseas. In Orion, widescreen models account for about 70 percent of production.

Suppliers source LCD panels mostly from Taiwan and South Korea, and to some extent Japan. The main LCD panel suppliers include Samsung Electronics, LG Display Co. Ltd, AU Optronics Corp. (AUO), Sharp Corp. and CMO. A number of these panel manufacturers have also set up fabs in mainland China. On the mainland itself, BOE Technology Group Co. Ltd has been in business since 1993.

Exports drive the business growth of widescreen LCD monitor suppliers in Greater China and South Korea. OEM and ODM combined account for a significant portion of export business, but revenue from own-brand sales has also been on the rise.

Generally, OEM and ODM shipments take up Taiwan's production. Taiwan's shipments mostly go to Western Europe, the US, Japan, South Korea and mainland China. Suppliers noted a recent boom in the Asia-Pacific region. Sinai exports mainly to Europe and the US. The company plans to expand its export base in Asia. Currently, Macro Power ships its widescreen monitors to Japan and the US.

Mainland China's LCD monitor shipments are dominated by OEM and ODM orders from global brands. Among the interviewed suppliers, OEM and ODM account for about 70 percent of total shipments. For instance, more than 90 percent of ViewG Sci-Tech's exports are released under OEM or ODM terms. However, OBM is its main mode of business within mainland China. The company's main export markets are Southeast Asia, the Middle East and Europe. It is now prioritizing growth in North America and Australia.

Shenzhen KTC releases about 70 percent of its LCD monitors under OEM or ODM terms, and the rest under its own brand. The company forecasts that its export volume of widescreen models will increase by up to 50 percent over 2007 exports.

Hong Kong suppliers capitalize on their well-established export networks in key markets around the world. Proview ships its LCD monitors to 50 countries worldwide. The company is aggressively expanding its sales in Eastern Europe, South America and the Middle East.

SCHOT's export markets include South America, North America and Greater China. The company has recently established a branch in Australia, and is also expanding to Europe, the Middle East and the rest of the Asia-Pacific.

South Korea suppliers have diverse export strategies—some concentrate on OEM business, while others are focused on niche markets. Piggybacking on the export success of its own A/D boards, Univision is currently pushing its finished products overseas, especially to Japan. The company projects its widescreen LCD monitor sales to reach $7 million in 2008.

Orion supplies its widescreen models under OEM terms to one of the large players in the LCD monitors industry. The current export ratio is about 10 percent, and shipments go to the US, France, Canada and the Middle East. Orion's widescreen LCD monitor sales target for this year is $110 million.