Putting LCD displays in multi-brand outlets, setting up LCD brand shops, availability of interest-free finance and other promotional activities have enhanced awareness of Samsung LCD monitors. The company also plans to focus on strengthening its channel in B&C towns.

For LG, FY 07 was a good year, as its total monitor sales touched the one million mark during the year. Its LCD monitor volumes showed 400% growth over last fiscal. LG currently has eight models of LCDs and five models of CRT monitors in the market. It recently launched an LCD monitor with "F-Engine" technology, which corrects and enhances the picture to make it look closer to real life images.

The company further plans to enhance its market share and is looking at strengthening its product portfolio as well as introduce more channel-friendly schemes. As the battle between the two electronic consumer durable giants further intensifies, the market should continue to see a further fall in LCD prices in 2007-08, as a result of which sales will jump.

Others in the Fray
The year also saw other players making headway into the Indian market with newer multifunctional LCD launches, and going for a wider operational channel network. Niche player Viewsonic launched its LCD model, ViewDock, with an integrated display with an iPod dock. It also recently launched a 22 inch wide screen multifunction HD LCD with an integrated 1.3 Mpxl webcam with microphone.

Whats in Store
The CRT monitor market in the overall monitor category saw a substantial decline. According to industry estimates, in another two years the CRT market size is expected to reduce to about 25-30%, with the rest contributed by LCDs.

The LCD market is expected to grow to 5.5-6.0 mn units in two to three years. The falling prices of LCD monitors in the beginning of the Q4 FY 07 further caused CRT monitors to fall out of favor.

Industry observers say that though there is a price hike on LCD monitors due to an increase in panel price (with effect from May/June 2007), which might help put CRT monitors in their original place for the next one or two quarters, the larger trend shows that CRT monitors have started paving way for LCDs in India.

Further, the growth of consumer durables like mobiles, iPods, DVDs, gaming consoles have also been indirectly having a positive effect on the growth of LCD monitors sales: the raison de tre being that display is becoming the key element in all forms of digital entertainment.

Not just monitors, LCD screens are becoming all pervasive. For instance, as phones become multifunctional, issues of picture clarity and better resolution are going to be the big drivers. Nokia for instance is believed to switch to LCD screens across its models very soon. Samsung will start supplying LCD screens for Nokias mobile phones. Samsung is likely to start selling them as early as the second half of this year, and is expected to continue initially to provide more than 20mn units a year.

iPods too seem to be impacting on the LCD front. Apple had introduced high definition LCDs for iPods last year. It is expected to bring into the market, built-in high definition LCD display as an accessory for iPods. Improved response time of LCD screens combined with availability of innovative features like iPod docking monitors would make them interesting buys for the end users.

According to analysts, there will be a huge replacement market in place by FY 08, helping push the LCD market even further. As the visual revolution further creeps in and the market matures, aesthetic values, environment friendliness, power saving, and space saving features of LCD monitors are likely to push the case against CRT monitors. Most CRT users, say industry observers, will seek to upgrade to an LCD, for the inherent advantages.

Urvashi Kaul
urvashik@cybermedia.co.in

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