The results of a survey from research group IDC show the Australian PC monitor market going through a massive surge in second quarter this year.

According to the IDC survey of the Australia total PC monitor market in 2Q 2005, the market grew 38% sequentially and by 20% from the same period in 2004.

The second quarter was mammoth, with total shipments tipping the 750,000 mark. The seasonal spike in desktop PC shipments, aided largely by a surge in demand from the government and education sectors, contributed to the robust growth, according to IDC. However, the continued price aggression exhibited by vendors remained a critical factor for the surge in PC monitor shipments.

"It is notable that vendors in the local market continued to pursue extremely aggressive pricing strategies, despite slight price increases on panels, specifically the 17 inch LCD. Vendors wanting to remain competitive had to absorb these price hikes, even selling below cost in some instances. Assuming that panel prices continue to experience slight increases over the next few months, it will be interesting to keep an eye out for which vendors are able to sustain their current pricing strategies and how market shares stand to be gained or eroded," said Mercie Clement, IDC analyst for PC Hardware.

In 2Q 2005 the original equipment manufacturer (OEM) market (PC vendor), accounted for 51% of the total PC monitor shipments, growing 62% sequentially from the previous quarter. The strong performance was more pronounced as several PC vendors saw the chronic shortages on LCDs come back into alignment this quarter, enabling them to fulfil pent-up demand. PC vendors are now more tactical providing better pricing schemes for PC monitors with desktops and are offering more compelling deals to their channel partners.

"The 2Q 2005 market saw some major changes in branded vendor rankings. BenQ achieved the top position with 18.5% share, 4 percentage points up from last quarter. LG Electronics fell to the second place, with 16.0% share of units shipped, while Samsung finished the quarter with 14.5% share. Philips climbed to the fourth spot, accounting for 12.8% share, as it benefited from the seasonal surge in demand from the corporate, government and education sectors. Rounding out the top five was Acer with 10.8% share," Clement added.

The top five vendors (branded market) were:

• BenQ 18.5%
• LG Electronics 16.0%
• Samsung 14.5%
• Philips 12.8%
• Acer 10.8%
• Others 27.4%