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To: Windsock who wrote (171675)	10/21/2002 10:19:53 AM
From: The Duke of URL©	Respond to of 186894

From the inq: Flat panel price war brewing Bargains to be had as over-supply brings prices tumbling By Paul Hales: Monday 21 October 2002, 13:00 AFTER A TURBULENT year in which the producers of TFT f(l)at panels managed to push prices up to breaking point, a price war is looming. UK analysts firm Meko says the "battle lines have been drawn and the first shots were fired during the last month". Research firm DisplaySearch reported last week that 15, 17 and 18-inch LCD monitor street prices at the end of September in the US were, "the lowest on record," and the company notes that 17.x inch monitors fell 3 per cent in just two weeks in the second half of the month. These rapid price cuts are being matched and, in some cases it seems, exceeded in Europe, says Meko. Reports from the Far East suggest that pricing for LCD panels will fall to USD10 per diagonal inch by the first quarter of 2003. In the case of 15-inch panels from Taiwan, this is about USD40 below the current best pricing. Keko notes that 15-inch panels have fallen in price by as much as 40 per cent since May. The increased capacity from Samsung and LG.Philips 5G fabs is the reason cited for the USD10 per inch price level. One analyst at Primasia Securities in Taiwan is predicting that this level could be reached before the end of the year. Meko noted two examples of low prices for 15-inch" and 17-inch monitors. UK online reseller Jungle is well-known for delivering relatively large quantities of unbranded products or models from little known product at low prices But, it seems the company has managed to secure a supply of ViewSonic monitors at such a low price (£229 inc VAT). Actebis too has a special offer pricing on a Lite On 17-inch -- one of the lowest Meko has seen over the past few weeks. Meko says its has been told by a number of vendors that they have been striving to get a purchase price low enough to allow a street price of below EUR500 including tax and the price advertised by the Germany-based distributor is well below this. Vobis is also offering a 17-inch product for below EUR500. Its Highscreen 767 TFT is now being promoted for EUR499. Pete Gambuy of Meko told the INQUIRER he expects, "Dell and others with significant buying power and that are excellent at supply chain management to win in the price war in the run up to Christmas. In the longer term, it will be those same companies as well as those that are fully vertically integrated that will succeed." Gamby says he expects, "increasing consolidation" in the longer term. "We still expect to see brands rise and fall, come and go in the short to medium term," he said. "Whilst panel oversupply exists, there will always be those that will seek to make a fast buck from some sharp product pricing!"