Cheaper LCD iMacs? Maybe! LCD Price Drop Coming

by , 8:00 AM EDT, May 30th, 2002

Still fuming over that US$100 increase Apple slapped onto the new iMacs? Wish Apple laptops were a tad cheaper? Take heart. According to a C|Net News article titled "LCD shipments expected to pick up,: shipment of LCDs for computers will increase significantly over the next few months, thus lowering the cost to computer manufacturers.

Rising component costs were cited by Apple at MACWORLD Tokyo as the reason for raising the iMac's price by US$100. RAM and LCD costs were the two biggest of those rising component costs. From the article:

Austin, Texas-based DisplaySearch updated on Wednesday its projections from March on shipments and revenue for large LCDs--those 10 inches and up. LCDs are commonly used in flat-panel monitors and notebook computers.

"Several major manufacturers are bringing their fifth-generation (factories) online (this year), and that will significantly increase supply," said Ross Young, DisplaySearch's president. The firm expects shipments to rise by 55 percent in 2002, up 7 percent from the March forecast.

The new factories are capable of handling larger glass sheets than in the past, allowing companies to produce more monitor panels per sheet.

This might be good news for those hoping to see Apple's prices eventually drop. While you wait, you can find more information in C|Net's full article.

The Mac Observer Spin:

Just as rising component prices were said to put a crimp in Apple's profits in the March quarter, falling component prices have been cited by analysts such as Don Young of UBS Warburg as reasons why Apple's June and September quarter profits should rise. This LCD supply forecast is a medium term outlook, and one shouldn't expect Apple to announce price cuts in its product line tomorrow because of this.

Apple can move quickly to respond to rising or falling component costs, but it will take some time for this LCD supply increase to reach OEMs. The real question is whether Apple will take the opportunity to lower retail prices when these cheaper components do reach them. Our educated guess is "yes," but it should be pointed out that the iMac is still selling VERY well despite its higher price tag.

LCD shipments expected to pick up