Dell Incident Triggers a Chain Reaction: Sony Exits Desktop Monitor Business

The large-scale recall by computer manufacturer Dell of 4.1 million laptop batteries made by Sony has left the company disgraced, its image receiving a serious blow for the first time. However, bad news kept coming: reports suggested that due to fierce price competition, Sony would exit the desktop monitor market.

Although Sony officials did not comment, IT resellers stated they had been informed by Sony that it would exit the desktop monitor market. Michael Stavnshoj, display product manager at IT reseller Zones, said, "It's not because their standards are inferior; they've decided to exit this business."

Last week, Sony informed IT resellers that it would stop offering desktop monitor products but would continue selling large-screen LCD TVs and plasma screens used in digital billboards in the transportation and retail industries.

Display experts indicated that the desktop monitor industry would face intense price competition. Historically, Sony led the global CRT monitor market with its technology. Its single-gun tri-beam color cathode ray tube technology was widely praised in the industry. When transitioning to LCD panels, it remained a recognized brand and garnered much support even in cost-competitive markets. Although there are still opportunities in the high-end market, the competition is extremely fierce.

Rhoda Alexander, director of display research at market research firm iSuppli, noted...