by Denise
Harrison
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Title: Company: Company description: Location: |
Q: What do you believe were the biggest changes in the industry in the last five years? How did they change things and what impact did those changes have?
A:
The projector
industry has gone through several changes in the past five years. The
first major change has been the explosive growth in the number of projector
manufacturers, resulting in an increase in both the total number of
projectors and the options for buyers.
Second, the move towards full capacity of competition and the start
of market consolidation. Third, the need to expand the marketplace and
open up new channels, like PC distribution channels. Fourth, the rapid
decrease in price on portable projectors and the impact that has had
on the marketplace, most significantly influencing the trend to sell
directly to end users. Fifth, the impact of new technologies to make
projectors smaller, lighter, brighter.
Q: What is the state of the market now? What are the propelling forces and what are the barriers to growth?
A: The projector market has hit first stage consolidation. This is a transitional phase indicating a small dip in production or growth, signified by either vendors or distributors being consolidated or eroded. I anticipate another leap forward within a year, which should manifest in a run of significant growth before a major consolidation of manufacturers.
The propelling force is the ease of entry into the marketplace. Today, more than ever, technology firms are able to develop and deliver projectors in relatively short periods of time (6 to 9 months). The total marketplace has grown significantly to support the kind of revenues required for billion dollar companies to make significant investments in the industry. Acceptance of technology in business has made projectors a requirement in many cases versus a luxury.
Some barriers to
growth are the availability of LCD panels and the stranglehold Texas
Instruments has on DLP/DMD technology. The cost to produce has not decreased
at the same rate that the cost to buy has. Margins are temporarily thinner.
This should change once technology catches up with market forces for
affordability and availability to the masses. There is a lack of creativity
in the industry to break the standard distribution and delivery of product
to new customers.
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