West European distributor sales revenues from large format displays (LFDs) continued to grow by +8% in early Q3 2018, but sales of videowalls saw a 9% decline year-on-year, according to the latest distribution data published by CONTEXT, the IT market intelligence company. Interest in videowalls remains high but this was not reflected in distributor sales in early Q3. Both revenues and volume sales in Western Europe declined in that period. Weakness came from all screen sizes. The only growth spot was 124,5cm displays, the sales of which more than tripled.
Despite the weak performance of videowalls, standard (non-touch) and interactive displays saw double-digit sales growth in early Q3. Amongst standard LFDs, 140cm displays remain dominant, but there is a visible trend towards smaller 124,5cm, 109cm and even 81cm displays, together growing by 82% year-on-year. Ultra large displays, 216cm and above, still account for a much smaller volume share but interest is increasing. Volumes of these models more than doubled in early Q3. Amongst displays with touchscreen the biggest shift has been noticed for LFDs with 190cm, which now account for over 20% of volume sales.
The first eight weeks of Q3 saw average selling price (ASP) decline across all types of displays. For instance, the ASP of the most popular 140cm non-touch LFDs dropped by over €100, which is a 10% decrease year-on-year. The trend seen in last couple of quarters is therefore good news for customers still considering investing in large displays for digital signage or business collaboration purposes. An early Q3 fall in ASP was a likely contributing factor in the +14% year-on-year volume growth and a relatively slower +9% year-on-year increase in revenues for Western Europe’s distributors.
“Strong sales in early Q3 follow the already very positive trend for LFDs at the beginning of 2018, which should continue in the second half of the year”, said Dominika Koncewicz, Senior Analyst for Displays at CONTEXT. “Despite weak performance, we should see more videowalls as well as increasing interest in high brightness outdoor displays.”