Fueled by CDT monitor replacement effects and increased bundling rates with PCs, LCD monitors underwent 15% sequential growth in the fourth quarter of 2003, up 64% year on year. With yet tighter supply of LCD panels and an increase in share of monitors 17" and larger, both ASP (Average Selling Price) and shipment value rose. Value climbed 18% sequentially and 85% year on year to hit US$3 billion; ASP increased from US$299 in the third quarter to US$306.

Volume of 15", 17", and 19" sized LCD monitors continued advancing in the fourth quarter; however, growth of 15" models was stymied by the panel shortage, which drove customers to aggressively push 17" monitors in the market. Volume growth for 17" displays was hence the greatest, with shipment share exceeding 40%.

Taiwanese CDT monitor shipment volume grew close to 12% sequentially to 11 million units; however, volume continued its year on year descent, falling by approximately 7%. Given the degree of maturation CDT monitors have reached, price declines on mainstream sizes were limited and little change in ASP occurred between the third and fourth quarters of 2003. Shipment volume grew by roughly 12% sequentially to over US$1 billion, declining 10% year on year.

In the first quarter of 2004 LCD monitor demand is expected to continue growing due to CDT monitor replacement and PC bundling. However, panel supply remains a key factor impacting the future shipment performance of LCD monitors. Due to replacement effects and the weak season in the PC market, CDT monitor shipments will fall. However, as LCD monitors continue to face panel supply issues, the fall in CDT monitor volume is expected to slow from the rate of decline witnessed during in the first quarter of 2003.