Thin Is In For Monitors
Once again, Samsung is VARs' clear-cut favorite across every criterion of the 2005 VARBusiness Annual Report Card (ARC) when it comes to Display Technology.
Samsung's strong Product Innovation scores reflect its several "firsts" in performance advances, such as LCD refresh rates and contrast ratios, and ever-larger prototype screens. The company's aggressive technical innovation has helped push flat-panel performance well into the acceptable range for full-motion video, triggering a replacement cycle on desktops and opening new markets for VARs.
On the desktop, flat panels up to 20 inches are popular with customers who find that bigger, more viewable screens improve productivity. Samsung's 19-inch LCD SyncMaster 930bf is a good example, offering fast 4-ms response time and 1,280-x-1,024 native resolution. LCD display technology is replacing plasma on desktops as the price gap between the two technologies steadily shrinks. LCD and plasma displays of the same size will cost about the same in 2006, analysts predict.
In addition, VARs are replacing bulky CRT screens with sleeker flat panels. Display vendors' production costs are dropping as volume increases, helping to maintain resellers' profit margins.
Second-ranked NEC Display Solutions, which lost a bit of ground in the overall weighted rating, was rarely far behind. The company has introduced several refinements of its own. Herb Berkwits, product manager for Quest International, a medical-systems integrator in Irvine, Calif., says NEC's X-Lite technology, which permits exact matching of colors on displays, both new and not-so-new, has been especially helpful in Quest's business.
"Definitely, sales are up as more hospitals are going from analog to digital displays," he says.
Hotels, meanwhile, are upgrading to large flat-panel displays, says Neal Goldsmith, product manager for the large-display systems group at Sony, whose scores are virtually unchanged from last year's ARC. These displays play double duty as TV sets and computer monitors, providing road warriors' eyes a break from relatively small laptop displays. As such, Sony's latest products include network adapters and pay-per-view tuners, as well as consumer-oriented features, such as built-in speakers and cosmetic enhancements.
Samsung and NEC also are aggressively pursuing the digital-signage market, where large displays of 30 inches or more come into play. Market research firm iSuppli predicts that large-display revenue will grow from $2.5 billion in 2005 to $4.6 billion in 2010.
"We're seeing growth in large-display systems for advertising in banks, automotive dealerships and even medical laboratories' waiting rooms," says Bryan Carmady, president of digital-signage integrator Digital Media Assets in Lake Worth, Fla.
Partner support is especially critical for VARs who are learning new markets, such as digital signage. Samsung and NEC earned high, above-average ratings for Support and Partnership in this year's ARC, reflecting their commitment to new markets and the channel. Both firms have enhanced their channel programs with additional training, financial incentives and Web-based communities.
"NEC provides especially good face- to-face support, conference calls and prompt responses to technical questions," Quest's Berkwits says.
Looking into 2006, LCD flat panels will come down in price even further, in ever-larger size ranges. Plasma displays will achieve parity with LCDs in longevity and total cost of ownership.
The vendors rated highest in the ARC are valued for their opening of new markets, reseller training and communication, evidence that product innovation and low prices are not enough to ensure VARs' loyalty or increase channel sales. As new applications for display technology appear, vendors will have to supply more than hardware to keep VARs' business. *