Cheap LCDs: Going, Going, Gone?

The $300 15-inch flat-panel display may disappear as demand outstrips supply.

Hey, buddy, want to buy a cheap LCD? As we went to press, you could easily purchase a 15-inch model from an established vendor for less than $400, or as little as $300 for a lesser-known brand--as opposed to $2600 just three years ago. If you think those prices sound tempting, then you should buy soon, because prices for 15-inch LCDs may be creeping upward. Growing demand is erasing the surplus of raw LCD panels that was spawned in 2001 by sluggish notebook sales and improved manufacturing techniques.

Prices Going Up

The lower-tier vendors that were selling 15-inch LCD monitors for as little as $300 already are beginning to raise prices to cover increased costs, says Rhoda Alexander, director of monitor research at Stanford Resources-ISuppli. Top-tier vendors selling displays in the $400 range should be able to absorb the extra costs for the short term, she says. NEC/Mitsubishi, for example, hopes to continue to offer a sub-$400 model. In fact, it optimistically introduced the thin-frame 15-inch LCD1550X in November 2001 at $399. But Chris Connery, director of product line management for the company, admits that price may not last.

Farewell, Rebates

Instead of raising prices outright, Samsung will likely cut its rebates first, says Rey Roque, vice president of marketing. For example, the SyncMaster 570vTFT should stay at $399, but the $50 rebate Samsung offered on the unit in October was slated to drop to $20 or less by January.

Prices for many 17-inch LCD monitors may increase as well, although not as much as prices for the cost-sensitive 15-inch models, according to Ross Young, president of the research firm DisplaySearch. The average price of a 17-inch model dropped from $1562 in November 2000 to $804 in November 2001, he says. Look for prices to move upward from $800 early in the year.

Even at a slightly higher price, a 15-inch LCD remains a solid option for anyone seeking a better computing experience without buying a new PC, says Alexander. An LCD also allows you to reclaim desk space and offers some power savings over a CRT, she says.

Says Herb Berkwits, ViewSonic senior product manager, "When it comes to the end of the day, what is it you're staring at? It's not your PC."