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Flat-panel monitor prices predicted to fall

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.

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