Is the 15-inch monitor on its way out?

CHENNAI: The prices of 15-inch monitor have shot up over the last week, following a rise in demand for the product. According to market sources, there is a shortage of CRT (picture tube) component supply mainly for 15-inch monitors, in the international market, which forced many vendors to go slow with the production of 15-inch monitors. Meanwhile, in the local market the product prices have shot up by nearly Rs 400. This is the case with the leading brands.

In some instances, the product is not available even if the customer is ready to pay the premium. However, the other ranges are available with all the vendors. But buyers are not inclined to go for the next range of 17-inch monitors, as the price difference of Rs 1,000 is huge. The industry is playing wait and watch and if the present situation continues for few months, it is expected that business will slowdown as end-customers may postpone their buying decisions.

"The 15-inch monitor shortage was there for the last two weeks and the prices have gone up by Rs 400. Samsung and LG are hardly available, so Philips is cashing in on the opportunity by supplying good quantity. However, Philips has also increased its price and 15-inch is the most-preferred range among the customers," informed Sagar Infosystems Director, Naresh Kanted. Philips is currently selling at Rs 4,400-Rs 4,500. The same product was earlier available at Rs 4,100.

Expressing ignorance about the shortage of 15-inch monitors Bohra Technology Pvt Ltd director Nirmal S Bohra said, "We do not know the exact reason for this sudden shortage of 15-inch monitors. There are a couple of stories floating in the market. However, the shortage is not that acute at present, and we are able to provide 15-inch monitors to the customers, but not exactly their choice of brand. Currently, Samsung is available but not LG. Similarly, Philips and HCL are also available in limited quantities but Microtek and Proview are in shortage."

The market is agog with rumors that 15-inch would be phased-out shortly and 17-inch will be positioned as an entry-level product. Reacting to the rumor, Bohra said, " We have been hearing this story for the last one and half-a-years but, nothing has happened until now. Unless the price gap narrows down between 15-inch and 17-inch, the market shift would not happen that fast. Some customers still prefer 14-inch monitors, which was an end-of-life product."

But according to a source close to LG, "The 15-inch phase-out is imminent and the Indian market has to move in line with the overseas markets. The stage for transition from 15-inch to 17-inch is set and the prices are also coming down everyday. It won't be long before the price gap will be closed to promote 17-inch as mainstay in the market."

"The 15-inch has over 60 percent Indian market. If the present crisis continues, the market will take a hit in the coming weeks. At Microtek, the stocks are not available since the last one week. We expect some goods in the next week. However, the price will increase by Rs 200 in the new consignment," said branch manager of Microtek International Ltd, Sandeep Mathur.

In contrast, HCL price increase is half of that at Rs 100. "We continue to supply in good numbers, thanks to good planning and forecast. Anyway, the shortage will not last more than two months. The present crisis was brought upon as CRT manufacturers focused on TV production because of the recently concluded Olympics," said national manager (display products) at HCL Peripherals, VR Kirubakaran. He stated, "The phase-out of 15-inch would not happen immediately. However, we can expect it to happen during mid-next year."