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Strategies & Market Trends : Anthony @ Equity Investigations, Dear Anthony,

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To: Wolff who wrote (78412)6/23/2002 6:52:38 AM
From: Wolff  Read Replies (1) of 122087
 
GNSS: Will Flat Panels Ever Replace CRTs?
Fri Jun 21, 1:31 PM ET
Elizabeth Millard, www.NewsFactor.com

Pity the poor cathode ray tube (CRT). When placed next to a sleek flat-panel monitor, a CRT looks bulky and archaic, as much a remnant of the recent past as a rotary-dial phone.




But do not count the big boxes out yet. According to analysts, flat panels still have a way to go before they become the new desktop standard.

Some monitor manufacturers and analysts agree, however, that the move toward flat-panel ubiquity is picking up speed.

Thin Is In

There are many advantages to living in the flat-panel world. First -- and most obvious -- is that these monitors take up significantly less space on a desktop. And some, such the one attached to the lamp-like iMac, are almost infinitely adjustable, able to be manipulated both horizontally and vertically with a feather-light touch.

Flat panels also require less electricity than CRTs. A 19-inch CRT uses approximately 120 to 130 watts of power, while a similar-size LCD uses 50 to 60 watts.

In terms of safety, a flat panel is also superior. Virtually no radiation is emitted, and reduced glare and flicker translate into less eyestrain.

The downside of flat panels is their cost, which is often much higher than that of similar-size CRTs. But prices seem to be changing in consumers' favor.

IDC research analyst Jennifer Gallo told NewsFactor, "We believe that LCDs will overtake CRTs much sooner than expected, with 2003 being the year in which LCDs will assume more than half of the revenue in the total monitor market pie worldwide."

Old Guard

Despite their bulky appearance, however, CRTs trump flat panels in some areas.

They have better contrast and color saturation and can operate at a number of resolutions. LCD panels can display other resolutions, but when such monitors are changed from their "native" resolution, text tends to become blurred.

Most importantly, CRTs cost less.

"I don't think LCD will replace CRT anytime soon," Seth Ngin, LCD product manager at ViewSonic, told NewsFactor. "CRT will continue to be the standard display for some, if not most, consumers as well as corporate America, government and education segments due to cost."

Ngin added that CRTs are well-suited to a number of specific applications, such as video editing and display, high-end gaming and some graphics programs.

"Because of this," he said, "LCD will not replace CRT completely. But as the demand for LCD increases even further, it could overtake CRT."

Future-Speak

Other technologies are being launched to compete with flat panels and CRTs, but they are much less mature than either of those options.

Wireless displays and plasma monitors are two of the most promising new innovations, but neither has yet broken through with an affordable model.

Another closely watched technology is organic light emitting diodes (OLEDs), which theoretically makes screens brighter, cheaper, lighter and thinner than anything currently on offer.

New displays, however, face a huge challenge in getting to the marketplace.

Said IDC's Gallo, "An innovative technology is great for a conceptual theory and making waves in the press, but it takes a significantly long time to perfect the concept and arrive at a realistic price point for consumers."

Moving Forward

The trend seems to be moving toward crafting a flat-panel monitor that is affordable and offers superior image quality.

"CRTs have been around for so long, the manufacture of the product is a very mature process," Scott Brodrick, product line manager at Apple ( Nasdaq: AAPL - news), told NewsFactor. "We're still learning to manufacture LCDs in an effective way. When we do, I assume we're going to drive the cost out of that technology."

Although Apple switched to using mainly flat panels a year ago and now offers CRTs only with its eMac, Brodrick said he thinks both types of monitors can coexist in the marketplace.

"Flat panels are exciting," he said. "But there is certainly still a place for the CRT."
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