Once again in 2006-07, LCD monitors outpaced CRT growth by a huge margin. Even though CRT still rules in terms of units sold, there was a marked swing in favor of LCD monitors. The shrinking price difference between the two form factors is making LCD a more affordable option amongst both corporate and home users. Enhanced technical features and aesthetic appeal further helped sustain momentum.

Globally, the market for 17 inch and 19 inch LCDs is dominating consumer preferences. In India too, with a growing preference for higher resolution and wider screens, the 19 inch LCD monitor attained a rising star status during the year. And as 19 inch monitors became mainstream both globally as well as in India, prices dipped 30% over the previous year.

The Dominator
At the moment, of the total LCD market in India, 75% goes for commercial usageincluding enterprise, education and government. Industry surveys forecast that this trend will hold for the coming year. Within enterprises, BPOs and financial institutions were driving the LCD monitor sales in 2006-07. For BPOs especially, energy and space saving turned out to be the primary catalysts to drive LCD sales. The LCD popularity graph also showed an upward curve in education, hospitality and the healthcare verticals.

The Vista business opportunity too is expected to gradually add a push from the second half of next year by further stimulating the overall monitor market demand, especially in wide and large size.

On the other hand, the LCD was an object of desire in the home segment too; here, it was the affordability issue, thanks to falling prices, coupled with the craving to adopt a digital lifestyle. For Samsung, the LCD was a key driver for home theatre sales to go up. While LCD and plasma TV sales stood at 140,000 sets during 2005-06, it is expected to reach 400,000 by this year. Demand in the SOHO segment too picked up as the price gap between CRT and LCD kept on narrowing.

How did this domination translate into business? According to DQ estimates, the contribution of LCD monitors to total monitor sales in the domestic market was close to 28%, and expected to touch 40% this year. Says Riyanka Patra, analyst, Computing Products Research, IDC India, "In the present scenario, shipments are showing a definite shift in favor of the LCD form factor which is eating into the share of CRTs." IDC expects LCD monitor shipments to surpass those of CRT monitors in the year 2007-08.

Koreans Fight it Out
It seems, for now, that Korean giantsSamsung and LGare here to rule. With the two grabbing a combined market share close to 66% of the total LCD sales in India, its as good as it gets for the Koreans. Samsung tops with 36% market share, while LG stands at 30%. Clearly with Samsung, in the lead, LG is concentrating on pushing LCD monitor sales with increased focusgearing up to take the lead by end 2007.

At Samsung, the leading player with a market share of over 36%, LCD sales have left behind CRT sales. The company expects LCD sales to fetch 45% of its total monitor sales during the current fiscal. For the calendar year 2006, it was around the same level as that of the domestic industry. As a part of its strategy to grow the LCD business, Samsung plans to create consumer awareness and encourage upgrades to LCD monitors, lured by technology and feature enhancements in its new range.

According to internal estimates, Samsung expects the share of the 17 inch monitor segment to touch over 50% and the 19 inch and above segment to be around 13% this year. Toward the end of FY 07, the 15 inch LCD segment shrunk while the 17 inch became mainstream. Also, wide screen monitors were getting accepted in the home segment, while the corporates and institutions preferred the 4:3 form factor.

The contribution of the 15 inch LCD monitor is expected to further drop to a 40% level, while the 17 inch monitor is expected to grow from 47% last year to around 49%. The total contribution of the 19 inch and above LCD monitor segment is expected to double this year.

During the year in the Indian market, Samsung introduced three new series of LCD monitors Myst, Mendel and Mobius. While the models in the Mendel series are optimized for Windows Vista software, the flagship Myst series of LCD monitors scores on account of its unique design: it comes with a "soft minimalist design", with a new ball hinge mechanism, offering a response time of 5ms and contrast ratio of 700:1. Available in 19 inch (932 B), 20 inch (206 BW) and 22 inch (226 BW) screen sizes, the monitors have a 16:10 wide format.

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