HP targets fastest-growing part of professional graphics market
In April, at the NAB (National Association of Broadcasters) show in Las Vegas, HP launched two new DreamColor desktop displays, the Z24x, a 24.1”, 2.3 MP (1920 x 1200) display, and the Z27x a 27”, 3.7MP (2560 x 1440) display. Both offer a myriad of professional specifications including color space selection, custom color space creation, screen calibration and the ability to display over 1 billion colors. However, what got more attention than the impressive display specifications were their launch prices, especially that of the Z24x.
The Z24x replaces a 6-year old model (LP2480Xz), which as of Q4’13, had an ASP of $1,801. The new model is available starting at $599, or basically one-third of the current price. This pricing strategy appears to be a direct attack on Dell, who, according to our new Specialty Displays Report, held the #1 market share in 2013 for worldwide shipments of professional graphics displays, while HP ranked #8.
Even in the professional display category, there are competing brands offering different levels of quality and performance, from entry-level to high-end professional. As technology has improved and costs have decreased, some entry-level displays have become “good-enough” for the majority of end users. As panel vendors and customers migrate away from traditional 19”-22” displays in favor of the 23-24” size category, the time may be right to have “good enough”, lower cost professional displays to meet these growing demands.
Our research also confirms that HP’s choice of screen size and resolutions are focused on the heart of the professional graphics market. In 2013, 32 percent of professional graphics displays were 24.1” (1920 x 1200), while 40 percent were 27” (2560 x 1440). Therefore, HP has an opportunity to engage 72% of the marketplace with just two models. By 2018, 23.8” displays will make up 11% of the market, and 23.8-27” sizes will account for 82%.
Source: NPD DisplaySearch Specialty Displays Report