Flat-Panels Display VAR Opportunities

Digital flat-panel displays have historically been relegated to vertical market applications by limited supply, high price tags and a lack of standards. Those limitations have not been vanquished completely, but they are slowly being remedied. In the process, resellers in the corporate environment and VARs working in financial, medical and other vertical markets are finding creative opportunities with flat-panel monitors.

The flat-panel display market should grow dramatically during the next couple of years. In fact, market researcher Electronic Trend Publications, San Jose, estimates that the worldwide flat-panel display market will almost double from $14 billion in 1997 to $27.2 billion in 2002. That represents a compound annual growth rate of more than 14 percent and is particularly significant in light of expected price reductions on flat-panel products.

Last year, flat-panel monitor supplies were limited, due mainly to a shortage of the flat-panel glass. That led to long lead times and increased product prices. Now, although large flat-panels are still scarce, a number of manufacturers are ramping up production lines, and there is a promise of better yields, and, thus, increased supply in the relatively near future.

"The supply of 18-inch panels is extremely short," says Jim Witkowski, hardware engineering manager at Cornerstone Peripherals Technology Inc. "Manufacturers are slowly bringing up lines, although supply, in general, will be tight into next year. But, at least in the past five to six months, we've seen pricing that has stabilized or gone up only slightly."

On Shaky Ground

The earthquake in Taiwan, which had a heavy impact on manufacturers beginning to build factories in that region, is a setback. "Recently, the world has looked to Taiwan to come up to speed in flat-panels," says Chris Connery, product line manager, LCD monitors, for NEC Technologies. "But the earthquake has put a question mark on how fast those manufacturers can come up to speed."

Although prices of flat-panel monitors remain significantly higher than those of traditional CRTs, some corporate users are considering flat-panels based on a total cost of ownership model rather than simply on sticker prices. LCD monitors take up less space, and these units use less electricity and dissipate less heat.

"In an installation of hundreds of units, those factors can add up to hefty savings," says Jeffrey Geis, marketing manager for displays at Samsung Electronics America Inc. "In the long run, although users are paying more for flat-panel displays than CRT displays, the lifetime prices are equivalent because of power savings and warranty life."

Clients are also looking at smaller displays as a way of using more flat-panel technology. "Traditional verticals, especially the medical market, are very interested. Financial users like them for backroom areas," says Connery.

Viewing angle and mountability are top differentiating features between one flat-panel product and another. Traditional CRTs provide superior viewing angles, so LCD monitor makers are trying to widen the viewing angle of their monitors. And users want to be able to mount their LCD monitors on an arm or a well. That would mean a good margin-boosting opportunity for resellers.

"The customization that comes with mounting LCDs allows resellers to differentiate themselves," says Michael Marusic, national marketing manager at Panasonic Document Imaging Co.

Quick Scan

Cornerstone Peripherals Technology Inc. Fremont, Calif. (800) 562-2552, www.bigmonitors.com

NEC Technologies Itasca, Ill. (630) 467-5000, www.nec.com

Panasonic Document Imaging Co. Secaucus, N.J. (201) 271-3454, www.panasonic.com

Samsung Electronics America Inc. San Jose, Calif. (800) 933-4110, www.samsungelectronics.com