Increasing component prices are eating into the profits of LCD monitor manufacturers – despite record shipments.

Production of 15-inch LCD monitors is "almost profitless" according to a Digitimes report.

The price of 15-inch LCD monitors has increased by less than 10 per cent since last year.

Profit margins on the monitors have decreased from eight per cent in Q4 last year to about six per cent now. Subtracting a further 4 per cent in operating expenses makes production of the monitors "profitless".

LCD monitor producers hope to revive the situation by cutting expenses and producing other products.

Apple recently introduced price hikes on its new iMac range after production problems with 15-inch LCD screens.

The problems have since been ironed-out and all three models in the range are shipping in abundance according to Apple UK's managing director Mark Rogers. However, the price increases remain in place.