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But coupled with declining prices has come better technology, shorter product life cycles and an expanding market for higher-end displays and solution sales. And many in the channel believe the display market is poised for continued healthy expansion for some time to come.

It has not been an easy market to try to predict over the long term. Consider that in March 2003, Dell advertised 17-inch LCD displays for $449. A year later, as the market's hunger for flat panels grew, Dell listed the same-size monitors for $539. But as recently as March 2005, the Round Rock, Texas-based direct computer company listed those same 17-inch displays for the bargain-basement price of $254.

"If you think about where we were even a year ago, for an end user to purchase [that display] even in the high $200s is amazing," said David Nichols, director of display marketing at Samsung Electronics America, Irvine, Calif.

But if you heard a loud thud recently, it may be the sound of flat-panel display prices hitting rock bottom. "You're not going to see prices drop too much more," said Cory Boatwright, president of envisionTek, Edmond, Okla. "When you see 42-inch plasmas hit the $1,200 to $1,500 range, you're not going to get much lower than that."

But solution providers say that won't mean the end of the party. What Boatwright and other solution providers have their eyes on, beyond the eye-catching displays, are the top-to-bottom needs of a full-blown solution. EnvisionTek specializes in digital signage solutions, which use display technology to deliver information and advertising to the public.

"It's becoming more and more available and affordable for smaller, midsize companies," Boatwright said. "As that happens, you're seeing a lot of department stores on the East and West Coasts and smaller companies trying it out. Digital signage is being sold more as a package with software, services and integration into a server."

The difference between a simple hardware sale and a solution sale can be the difference between a $40,000 project and a $3,000 project, Boatwright said. And those opportunities are more available than some may think.

"As you get to the 19-, 21- and 24-inch [models], you begin to see people experimenting with digital signage, even with low-end LCDs and plasmas," Nichols said. "We've had more interaction lately with advertising agencies who say, 'I need a different way to get my message out there.' "

Solution providers, analysts and vendors identified several other trends now impacting the display market:

&#149 The "sweet spot" of the LCD space has moved solidly from between 15- and 17-inch monitors to displays between 17 and 21 inches.

&#149 Quarterly worldwide display shipments are growing steadily. According to research firm DisplaySearch, shipments should grow to 29 million by the fourth quarter from 21 million in the first quarter. The high end of the display arena continues to grow, with vendors demonstrating displays as large as 82 inches in the first quarter.

&#149 With several key manufacturing alliances forming this year—including a manufacturing agreement between giants Sony and Samsung that should commence later this year--economies of scale could begin to drive consolidation in a market that had been experiencing a growth in the number of suppliers.

But for the channel, the overriding trend--and one that has been long awaited by the industry--is the development of a technology refresh cycle on the desktop. In some cases, the refreshing of displays is taking precedence over PC upgrades. Solution providers say it's not uncommon for clients to put off PC upgrades while going full-bore on migrating to the latest display technology. "I've had clients come to me wanting just to switch over to an LCD without upgrading their PCs," said Ted Hunter, vice president of Champion Networks, Brunswick, Maine. "They see other businesses with them, and they don't want to look cheap by having big CRT monitors sitting on their desks. Anybody who is in any kind of professional environment, they are upgrading their monitors."

The higher volumes sparked by falling prices can be a double-edged sword. Innovative Design Technologies, Van Nuys, Calif., which has been focused on display solutions for 11 years, is finding more and more business among smaller companies migrating to new display technology and digital signage solutions. Yet Daniel Goldich, president of the solution provider, said sales to smaller businesses are not as lucrative as to the enterprise market.

Moreover, not only has the display market spawned increased competition among a plethora of vendors, it's had the same effect among solution providers. "I see there is a real increase in competition," Goldich said. "Whereas we've been doing this thing for a really long time, it's still a big fight every time."

Still, Goldich isn't complaining. Improved price/performance is ultimately the only way to drive market expansion, he said. As in other technology specialities, the key is to differentiate your business by wrapping higher value-add solutions and services around the technology.

Display manufacturers are in the same boat. "At first glance it may appear that the LCD industry has become saturated because the manufacturing of LCD is so much simpler than CRT and, thus, many newcomers have begun selling products with little differentiation," said Young Bae, senior product LCD specialist at ViewSonic, Walnut, Calif.

With flat panels becoming a commodity, vendors are looking for other ways to make their wares stand out. ViewSonic, for example, is attempting to differentiate its displays through features such as multipanel configurability, multiplatform inputs and ergonomic adjustability. "When an LCD purchase is being evaluated, the entire package needs to be considered from the panel and performance to the support available," Bae said.

Display vendors are also pushing faster, higher-performing displays into the market at a rapid pace.

"Eight-millisecond refresh rate is here now for a reasonable cost with 5-millisecond right around the corner," said James Neal, general manager for display product marketing in Sony's Home Products Division. "Faster rates benefit those who rely on demanding applications such as the gaming and military industries or those who need an affordable solution for high-end video performance."

They are pushing the envelope on screen size as well. Samsung sees the 19-inch market as the biggest growth area for 2005. "We have already seen the transition happening when the 19-inch street price went sub-$500," said Monica Islas, a Samsung product manager.

Tokyo-based Sony, on the other hand, sees a slower transition to 19-inch displays in the business market because the jump from a 17-inch unit does not provide the same kind of productivity boost as did the move from 15 inches to 17 inches, Neal said.

"Nineteen-inch LCDs will continue to grow in share as price points begin to come under $350," Neal said. "This is especially true for home applications that tend to blend usages from home finances to gaming."

In the meantime, displays from 42 inches to 82 inches--with anticipated prices in the six-figure range--are opening up markets in areas such as digital signage and providing new opportunities for solution providers in display technology.