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May 6th, 2005, 09:45 GMT

LCD prices are going up

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In the last year, the prices of LCDs recorded the biggest decrease since their appearance, but experts estimate that the good times are over and the prices for these devices will go up again.

Displaysearch, the analysis company, was announcing last week that during the next two years, the LCD production cost will decrease with up to 62%. Last year, the distribution
of displays with liquid crystals recorded a 50% increase, amounting to 36 billion dollars, and this trend will also continue this year, when the value of the TFT LCD market is expected to reach 43 billions.

In April, the prices of the 17 inch monitors increased and the producers hope this segment will generate more profits. Still, for May and June experts announce significant price increases.

Because the LCD offer was overwhelming, several system integrators have started to offer complete solutions which include both the central unit and the LCD monitor. Such an offer is best sold when accompanied by an important price cutoff, and the monitors were sold in large quantities, but didn't generate the desired profit.

After this abundance of monitors, the market is going now through a more relaxed period, and producers are relying on this to increase prices.

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