EU tax expected to boost LCD sales
Higher import duties could cause short-term rush
VARs could see a rush of LCD monitor sales if the European Union (EU) carries out its intention of imposing higher import duties on them, but in the long run, tight margins and rising prices could cause a slowdown.
The imposition of a 14 per cent rise in import duty on LCD monitors by the EU Committee on Excise Duties was being discussed as CRN went to press.
Holland, Denmark and Spain have already adopted the new rates.
Andrew Murray, analyst at iSuppli, warned: "With the low margins that many manufacturers make on these devices, it could wipe out any profit."
Ian Williamson, group marketing manager at VAR Probrand, said: "LCD sales are here to stay. Resellers will initially experience a sales bonanza, but in the long term, they will have to reconsider their margins."
John Turner, business manager systems and displays at Midwich, said: "Ultimately end-users will pay more. Why should distributors or resellers make less money because of tax? We will not be changing our cost-price to sell-price ratio."
Turner added that the firm had taken more stock to cash in on the rush in case the tax comes in.