Some surprising results from a research company’s latest study

Acer Canada managed to snag top spot in the overall LCD monitor market in Canada, displacing Dell and other traditional vendors, according to Evans Research.

Michelle Warren, IT analyst for Evans Research and the writer of the report, said Acer’s first place finish was a surprise. She said Acer Canada’s 2005 momentum in LCD shipments and its overall market popularity helped the subsidiary claim top spot.

“Dell, Samsung and Viewsonic are all very popular, but for the end result to be for Acer is good news for the channel (since Acer is a 100 per cent channel vendor) and for Acer,” she said.

Factors for Acer’s surprising success include strong pricing and the company’s ability to bring products to market, Warren added. “Aggressive price points which enable resellers and distributors to make money” were important, she said. “Acer did not cut prices on products, but they managed to give benefits back to partners.”

Acer’s supply chain and its inventory levels were also excellent during 2005. This was another factor why resellers championed the product over others, Warren said.

The LCD segment was also a winner, according to the report. The Canadian display market grew by seven per cent in the fourth quarter of 2005. Product shipments for LCD and CRTs were a combined 654,700 units. However, 84 per cent of those units were LCD, which may spell the end for the CRT monitor.

Warren predicts that 2006 will be another banner year for LCD, especially in the SMB space where adoption of LCDs is growing.

Total 2005 shipments reached an estimated 2,420,600 units. Unit volume rose sharply by 57 per cent. Meanwhile, the CRT segment continued its free- fall with a decline of 60 per cent.

The 17-inch LCD segment continued to represent the lion’s share of shipments with 52 per cent of market share, although the 19-inch area gained steam and finished the quarter with 37 per cent, Warren said.

Again Acer was the leader in 17-inch, while Samsung Canada was the top vendor in 19-inch displays.

BenQ Canada, the darling of the market in 2005, dropped in the final quarter, Warren said. “BenQ had some challenges with inventory and supply chain and they faced strong pressure from Acer and other vendors such as Samsung and Viewsonic,” she added.

Warren also said that BenQ Canada’s shift to other market opportunities may have contributed to its supply chain problems.

Total 2005 shipments for LCDs were 1,822,300 and she expects that number to increase dramatically this year to 2,400,200 units.

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Jim Love, Chief Content Officer, IT World Canada

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Paolo Del Nibletto
Paolo Del Nibletto
Former editor of Computer Dealer News, covering Canada's IT channel community.

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