The high penetration rate of LCD monitors and the increasing popularity of low-priced notebooks and tablet PCs are likely to cause annual sales of LCD monitors in Taiwan to decrease 10% in 2011. Total demand should be around 1.2-1.3 million units.

Despite the introduction of new technologies such IPS wide panels and 3D functions, customers have been more comfortable with LED-backlit products, according to industry sources. The penetration of LED-backlit monitors before the end of 2011 will be over 50%. Products with 3D functions have not been helping to increase sales.

Industry prospects for the fourth quarter are conservative and sales are expected to be flat compared to fourth-quarter 2010.

Industry observers noted LCD monitors for businesses are likely to show more growth than for the consumer market. Furthermore, Taiwan-based companies tend to prefer the same brand for both the monitor and computer. Hence, Asustek and Acer will likely win most business procurements and take about 60% of market share.