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http://www.insanely-great.com/news.php?id=1316
17", Larger LCD Prices Tumbling
By Remy Davison, Insanely Great Mac
December 2nd 2002
LCD price falls could mean better iMacs.
Digitimes reports that 17" and larger LCD display prices are falling as Japanese,
Korean and Taiwanese producers ramp up production and hold large inventories.
However, as firms such as Samsung move to next-generation LCD panels, shortages may
occur in the new-tech displays by Q2. By contrast, current generation TFT LCDs cite
weak market demand for PCs as the main reason behind reductions in LCD prices. A mild
recovery over Xmas will not prevent flat-panel wholesale prices from continuing to
fall after December, according to some analysts.
Large LCDs (17"-plus) which have seen some recovery in recent months due to Xmas, but
this has softened considerably in recent weeks, thus leading to gloomy prediictions
for LCD prices during Q1 2003.
Firms such as Toshiba, Sharp and LG have plants running at close to full capacity,
which has led to an increase in inventory, while shipments have slowed.
Apple reported exceptionally strong demand for its 17" LCD iMac in Q4. The $1,999 17"
iMac is a premium product, while less costly 15" iMacs saw disappointing sales figures
in the most recent quarter. Apple cut prices on 15" iMacs recently, reflecting
steadily-falling 15" LCD prices. This was in significant contrast to February's price
hike, when Apple could not obtain LCDs and other components quickly enough to satisfy
demand for the then-new iMac. Production of LCDs ramped up by the end of February and
Apple caught up in March, leaving the company with substantial inventory as the PC
market grew still weaker.
Apple is widely anticipated to drop the 15" models altogether once LCD wholesale
prices for larger displays reach their nadir. A 19" iMac has been rumored for some
months.
Analysis: 19" panels would need to fall in price considerably before Apple could offer
a 19" iMac at $2,000. It's doubtful whether the consumer market could stand more than
that. The up side is that it's possible Apple could offer 17" LCD iMacs across the
board, with maybe a base 15" iMac as an intro-level model.
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