IDC Finds Large 31+ inch Screen Size Monitors Remain A Positive Spot Amid Overall Decline in PC Monitors for Third Consecutive Y

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20 Mar 2013

FRAMINGHAM, Mass., March 20, 2013 – A decline in demand for PC desktops has led International Data Corporation (IDC) to lower its estimate of PC monitors shipped in the fourth quarter of 2012 (4Q12) to 36.3 million units, down from its previous forecast of 37.9 million units for the quarter. In the latest update of the Worldwide Quarterly PC Monitor Tracker, IDC also lowered its total shipment forecast for 2013 from 142.8 million units to 140.1 million units, which will represent a 6.0% year-on-year decline. By 2017, worldwide shipments are expected to drop further to 122.2 million units.

"Increased adoption of mobile devices as personal computing devices amid ongoing economic concerns in most regions of the world and consumer confusion around the Windows 8 operating system have led some consumers to skip buying a new PC desktop and monitor this past holiday season, and we expect to see decreased demand continuing for 2013," said Jennifer Song, Research Analyst at IDC. "Samsung leads the worldwide market with 15% share, followed by Dell and HP at 12.7% and 10.8% shares, respectively. We expect Samsung's dominance to continue for the year, helped by their leadership in LED backlight and TV tuner technologies. While the monitor market continues to contract, we do expect a refresh from expiring Windows XP operating system licenses in 2014 and growing demand from developing regions like Middle East & Africa to help increase monitor shipments and soften the decline. Additionally, the large monitor display segment above 31+ inches in screen size is expected to grow by 12.2% year on year in 2013 and to continue growing beyond that point in time."

In addition to decreasing unit totals for 2013 and beyond, ASPs are expected to decline by 1.5% per year through the forecast period. The hyper competition among the world's leading PC monitor vendors will be good for consumers as it continues to drive prices lower. IDC forecasts price-per-inch – defined as total value divided by total diagonal screen size shipped – to decline from $8.35 in 2012 to $7.46 in 2017. This trend is expected to continue given the natural migration of users to larger screen sizes. IDC forecasts the mean screen size of the market to increase to 21.4" in 2017 from 20.4" in 2012. Ostensibly, users will not only pay less in the future, they will pay less for larger devices.

While ASPs and profitability are expected to fall, innovation such as Samsung's PLS technology coupled with compelling marketing strategies to effectively reverse declining price levels would improve vendor margins. LG is also looking to drive better value at key screen size classes with lower cost 19.5" and 23.8" panel sizes to take advantage of reduced glass costs. "With consumers perceiving increasing degrees of technical homogeneity across competing offerings and increasingly believing their current monitors to be more than sufficient, monitor vendors must drive compelling innovation into the market to motivate consumers to accelerate upgrade purchases and refreshes," said Linn Huang, Senior Research Analyst at IDC. "Failure to do so will likely result in the long-term tradeoff of profit margin for volume retention."

Worldwide PC Monitor Shipments and Market Share, Fourth Quarter 2012

Source: IDC the Worldwide Quarterly PC Monitor Tracker, March 2013.

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About IDC

International Data Corporation (IDC) is the premier global provider of market intelligence, advisory services, and events for the information technology, telecommunications, and consumer technology markets. IDC helps IT professionals, business executives, and the investment community to make fact-based decisions on technology purchases and business strategy. More than 1,000 IDC analysts provide global, regional, and local expertise on technology and industry opportunities and trends in over 110 countries. For more than 49 years, IDC has provided strategic insights to help our clients achieve their key business objectives. IDC is a subsidiary of IDG, the world's leading technology media, research, and events company. You can learn more about IDC by visiting www.idc.com.

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