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PERIPHERALS: Moving Along, but at Snail’s Pace

Despite distributors looking seriously at non-metro markets, 2002-03 was a lackluster year for peripherals. The biggest reasons—wafer-thin margins and bundling offers. Against this backdrop, consolidation is bound to happen

Shrikanth G

Monday, August 04, 2003

Continued from Page 1

LCD MONITORS: Dropping Prices Propel Demand

Price cuts and aesthetic appeal did the trick—LCD monitors began moving off shelves in 2002-03. While individuals were slow in taking to them, it was corporates that drove sales

A steep drop in prices managed to generate rea-sonable demand for LCD monitors during the year. Niche segments like BFSI and ITeS were the major buyers for monitors. Though LCDs still cost twice as much as a CRT monitor, partners used the LCD’s space-saving, viewing angle and picture clarity features as its USP. Once considered objet du désir, LCDs began showing up on the common man’s desk as well. The main reason for this was that prices dropped dramatically. By the end of the financial year, an LCD monitor could be had for barely Rs 19,000. 

However, until recently, the story was different. The reason for LCD monitors not being so popular was the high price-tag that they used to come with. The price of an entry-level LCD monitor was not less than Rs 40,000. These monitors adorned the desks of the rich and the famous, the CEO’s desk and the reception area of big corporates. Average end-users could not even dream of an LCD monitor as an alternative for the CRT monitor on their desks. Today, however, the story is different.

WITHIN REACH...
VENDORS

Size

MODEL (INCHES)

Acer 15 19,990
Benq 15 19,850
CMV 15 20,250
Comptech 15 23,920
HCL 15 19,900
Philips 15 21,220
Proview 15 18,500
Samsung 15 23,000
Sony 15 31,500
Sharp 15 25,000
Umax 15 21,950
Viewsonic 15 29,500

Steep price drop 
In the last few years, over a dozen vendors launched LCD monitors and tried all means to push them in the Indian market. All failed. It’s only now that the market has shown signs of acceptance for this product—clearly an outcome of the huge price cuts.

According to market feedback, the factors that support the growth of LCD sales are dropping prices and appealing looks. The average price for a 15” LCD montior a year ago was around Rs 40,000, while a 17” LCD fetched Rs 70,000. Today, the same models are available at Rs 20,000 and Rs 40,000, respectively.

Niche sector demand
Vendors now estimate the total number of LCD monitors sold in India at about 3,500-5,000 units per month. The demand is mainly coming from the niche sectors of BFSI, ITeS and high-income homes. One factor that convinces corporate buyers while considering LCD displays is the ratio of up-front cost versus the long-term cost. A CRT monitor will cost less up-front but will use more energy than a flat panel monitor. A LCD monitor will cost more up-front but will conserve energy in the long run. The energy savings may not be much for an individual user, but if one is looking at a corporate office where 50 displays are in use, energy savings are significant.

CRT and LCD monitors are based on completely different technologies, and thus have different display characteristics. Of course, there’re advantages and drawbacks for the LCDs too, when compared to CRTs.

How LCDs score over CRTs
LCD monitors consume less power than CRT monitors—they draw between 25 and 40 watts of power, whereas for CRTs, it can range from 60 to 160 watts. LCD monitors also offer space-saving. Many users buy LCDs for the added deskspace they get. LCDs with a stand take up only one-third of the deskspace of a typical 15” CRT monitor and are extremely lightweight too. Also, unlike LCD monitors, CRT monitors emit harmful radiation. And finally, images on the LCD screen are distortion-free. Low reflection provides clear display even in broad daylight. Over the past year, the image quality in LCD monitors has improved considerably.

DQ Channels India



LAPTOP ACCESSORIES: Key to Greater Margins


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