So Many Notebooks, So Few LCDs

Demand for LCD (liquid crystal display) screens used in notebook PCs, desktop monitors and LCD-TVs is so brisk that the world’s third largest maker can’t keep up with demand, an executive at AU Optronics Corp. said Tuesday.

“We’re trying to figure out how to increase output,” said Po-Yen Lu, an executive vice president at AU, during a meeting with news media.

Computer parts makers such as AU normally see their busiest time of the year in the months leading up to the holiday season in Europe and North America as stores stock up on the devices they think users will most likely buy this year. Strong demand for LCD screens could cause prices for end users to rise a bit, since screen makers are able to negotiate better prices.

This year, the LCD screen market dipped in the second quarter after a strong start in the first three months of the year. In the April to June period, the value of LCD monitor shipments dropped to US$7.7 billion from $7.8 billion in the first quarter, according to industry researcher DisplaySearch.

DisplaySearch forecast that higher prices for large size screens, 15-inch and 17-inch, may stunt growth in the second half of this year.

by Dan Nystedt,  IDG News