Days after announcing a brand new monitor with an iPod docking station for video playback and despite facing fierce competition in the LCD-monitor market, ViewSonic, a “pure” LCD monitor vendor is expected to maintain its global leadership in the stand alone monitor market.

ViewSonic took the fifth position by 5.5% in the global LCD-monitor market during the second quarter of this year, up 46% on-quarter, according to DisplaySearch. Among the top-six players, ViewSonic and Lenovo are the only vendors to enjoy double-digit growth in this period. About 29.8 million LCD monitors were shipped globally last quarter, the research firm added.

The US-based vendor expects to ship 8 million LCD monitors in 2006, according to market sources. HC Ho, ViewSonic president of the global product group and the Asia-Pacific region, said in an interview, in late 2005, that demand for LCD monitors should rise to 115-120 million units in 2006.

In 2005, ViewSonic was ranked eighth, worldwide, shipping 3.5 million LCD monitors annually, the research firm inndicated, adding that the top five vendors were Dell, Samsung Electronics, HP, Acer and LG Electronics.

Rival Sony, a top ten LCD monitor supplier in 2005, now plans to give up its LCD-monitor business in the Japan and North America markets, starting from October, according to sources.

Thanks to new business model

Unlike the LCD-TV industry, where the top five vendors have their own LCD-panel plants to fully support their needs, LCD-monitor vendors do not necessarily have their own panel plants.

LCD monitor vendors such as Dell, Acer, ViewSonic and Lenovo, are gaining control over OEM makers in panel procurement. Through buy-and-sell business models, the vendors handle the purchase of LCD-monitor panels themselves and are able to gain a better quotation from panel makers based on their huge quantity of orders. The vendors then re-sell those panels to OEM contract makers.

Therefore, ViewSonic aims to grow its LCD-monitor shipments significantly in attempt to increase its bargaining power.

In addition, ViewSonic decided to move its Global Products Group, which handles the development and procurement of LCDs, CRTs and projectors to Taiwan from the US in 2005. The move was intended to strengthen the company’s relationship with Taiwan panel makers and solidify its inventory management.

By understanding the panel makers’ roadmap for new products in advance, the company is able to work closely with channel distributors, and ViewSonic is then able to be a leader in the LCD-monitor market. Meanwhile, pricing is another key strategy by which ViewSonic aims to increase its market share.