Prices of TFT-LCD (thin film transistor liquid crystal display) are
expected to fall in the months ahead as a result of increases in
production capacity.
TFT-LCD prices have soared more than 40% over the past year. The
average selling price for large-area TFT-LCDs - greater than 8.4
inches in size - reached $270 (£177) during the second quarter of
this year..
With production capacity on the increase, prices for TFT-LCD
modules are expected to fall, resulting in lower prices for end
users as vendors are likely to cut prices on 15-inch
monitors.
Despite expectations of lower prices for TFT-LCD monitors, they
still come at a hefty premium over their traditional cathode-ray
tube cousins.
TFT-LCD panel makers such as Samsung have an interest in seeing
TFT-LCD prices fall further. With next-generation TFT-LCD
manufacturing facilities coming on line in the coming months,
manufacturers want to see panel prices fall.
But even as increased capacity leads to lower prices, the cost of
TFT-LCD monitors will rise again if demand for flat-panel displays
exceeds supply.
That could happen during the second half of 2003 or in 2004, when
demand for LCD televisions will be stronger, and major PC vendors,
such as Dell, start to push LCD monitors more aggressively,
reducing the percentage of PCs that ship with a CRT monitor.