March Summary

Dear Readers,

The March issues of Projection Monthly (88 pages) and Microdisplay Report (20 pages) are complete. As usual, there is a lot to report. The Table of Contents for each can be by clicking these links:
Projection Monthly Table of Contents
Microdisplay Report Table of Contents

We realize an 88-page report can seem a bit overwhelming, but we think we have organized these newsletters to make it easy for readers to focus on just the sections they are most interested. If distributed throughout your company organization, there is then something for everyone.

At the device level, the big news came from Sony as it unveiled more details about its LCOS panel, called SXRD. It is a 0.78-inch panel with 1920 x 1080 resolution, 3000:1 contrast and a 5 ms response time. Now, Sony has answered Hitachi's HDTV panel, just now shipping in Toshiba's 57-inch RPTV. Most surprising is the contrast at 3000:1. Unfortunately, Sony is not talking about how they measured this or their plans for projection systems using the panel.

Also of note in the month was the availability of a $995 projector from NEC - as long as you also get the Smarter Kids Foundation grant, valued at $200. We hear this product is creating headaches for competitors who may be forced to try to match the price tag and may even be prompting others to exit the low-cost part of the market fearing their products can't compete. Further, the projector's success may be putting supply constraints on the 0.5-inch SVGA HTPS panel, interrupting roll out plans for other company's products.

Speaking of price pressure, Sony upped the ante this month by announcing a $2,500 Grand Wega RPTV based upon HTPS technology. The 42-inch will ship this September. By then, we suspect Samsung will match pricing on its similarly-sized DLP set, as will Panasonic for its 40-inch or maybe the 45-inch set. Coming in the same time frame will be LCOS sets from Philips, a DLP-TV from Thomson and more screen sizes in DLP-TVs from Samsung.

Will we see a $2,000 microdisplay-based RPTV from a major consumer electronics company by the end of 2003? I wouldn't be surprised.

Having just returned from Taiwan, you can sense the momentum building in all three technologies as Taiwan-China maneuvers to become the next manufacturing based for projection systems. LCOS sets are rolling in China now at attractive prices and with image quality that is better than I was expecting - and improving quickly. In front projection, BenQ and Coretronics should both hit 20K projectors per month this year. Everyone has a plan to move to China as volumes increase. Wow.

Digital cinema got in the news this month as Barco launched a more compact and less expensive model. This market appears to be a bit stalled at this time with new sites coming on slowly. However, there is evidence that digital projectors are coming in the back door, showing up to run trailers and ads and in the lobby. We will have to see where this new tack leads.

But there is so much more going on - you have to read this month's issues! In Projection Monthly for example, there's 12 pages of electronics coverage, 4 pages on screens and films, 5 pages on developments in LEDs and lasers and 2 more pages on illumination systems. InFocus is cranking up its RPTV business as it works with Thomson on its RPTV rollout, even as it works with Funai to move front projection manufacture to China. SpatiaLight reports it will ship 14K engines to Chinese customers and UMO is gearing up for the Chinese market too - now that it has absorbed the LCOS engine operation of Young Optics.

In the Business and Strategic section, there is lots of news about companies battling in the front home theater retail market, about plans to rollout, or not roll out LCOS TV, about plans to move production to China and branding and warranty changes.

Our Bottom Line section summaries the financial news from all the major consumer electronics and projection companies as they reported end of year results. As you would expect, sales of projection systems, LCD-TVs and PDP-TVs are increasing and driving profits, but other aspects of company's operations are hurting. Therefore, overall profitability depends on a company's focus so the resulted are mixed.

In Market Intelligence, we have a number of reports about what various companies and research firms think about the market opportunities for all big-screen technologies. There is a lot of data in this section which can be used very effectively to help you better understand the market - if you can navigate these conflicting views of the market. Who is right? I can't tell you, but if you come to the Projection Summit conference on June 1 & 2, you will get to see some of these analysts present their views and debate their assumptions with attendees.

In Microdisplay Report, we capture the highlights of the news from Projection Monthly. In addition, we have coverage of some developments in 3-D display systems, headsets and bring-to-eye news, in particular, new camera and camcorder products that feature microdisplay-based electronic viewfinders. Let's not forget, this is a vibrant and high-volume market where microdisplays are playing a significant role.

We will have more again next month including additional news from Taiwanese companies visited in February.

Until then…

Chris Chinnock
Sr. Analyst
Insight Media
chris@insightmedia.info

If you would like information about a subscription to Projection Monthly or Microdisplay Report, then please email Dave Torromeo, dave@insightmedia.info, or call 203-831-8464.