LCD TV and monitor prices are to rise between seven and ten percent by August due to the falling value of the Euro, according to Digitimes. But that story has been contradicted by a senior analyst in the field.
The European economic crisis, primarily fuelled by the devaluation and instability of the Euro, has caused LCD TV and monitor revenues for the first half of 2010 to plummet by over eight percent.
To make up for these losses the vendors will apparently up prices across the board, which may lead to lower demand in the third and fourth quarters of this year. Demand was high in the second quarter due to sales spurred by the World Cup, which has helped stabilise the market in Europe.
Europe is set to drop its shipments of LCD monitors from 25 percent of the world’s total in 2009 to only 20 percent in 2010, which is highly dependant on strong sales in the latter half of this year.
TechEye spoke to Bob Raikes, monitor analyst at Meko.co.uk, about these forecasts. He was not in agreement with the Digitimes sources. He said that although the brands would “dearly love to raise prices” due to the weak Euro, Meko believes that “softish demand” and relatively high inventory levels will make such a price hike extremely difficult in the short term.
He told us that if the inventory levels in Europe can be reduced, some brands may try to push up prices, but there will be competitive pressure not to do so. He revealed that many of these brands want to see their market share grow, even if means a short-term loss to profits.
He said that much of this depends on consumer confidence and demand, which is “notoriously difficult to predict”.