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Monitor ASPs to drop in 4Q05

Hau Ting Yuan, Taipei
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The ASP (average selling price) of LCD monitors is expected to fall 5-10% this quarter, with certain branded companies already cutting their prices, according to monitor makers. The ASP is expected to fall due to increasing panel supply, falling panel prices and promotions from monitor makers, the companies said.

Prices for 17-inch LCD monitor panels have fallen US$1 this month to US$171, according to WitsView Technology.

Supply of LCD panels continues to increase due to new capacity being ramped from panel makers, according to Taiwan-based monitor makers. Recently, Alan Chang, vice president of ViewSonic for Asia-Pacific sales and marketing, indicated prices for 17- and 19-inch LCD monitor panels have fallen US$3-5 due to price-cutting strategies launched by South Korea-based makers, with the price reduction from Taiwan-based competitors being less significant.

In addition, iSuppli recently indicated that sales of monitor panels will flatten in the second half of this year and prices for 17- and 19-inch monitor panels will decrease in the fourth quarter.

Monitor makers said they expect to launch larger-scale promotions this quarter, and makers have indicated that some monitor Taiwan and South Korea brands have cut their prices by US$5-10 for the Europe and US markets.

Article translated by Carrie Yu and edited by Michael McManus