Flat-panel monitor prices could be halved by Christmas, a top PC-industry figure has predicted.

The cuts are expected due to the recent entry of Taiwan-based manufacturers to the LCD (liquid crystal display) market. Korea has traditionally supplied LCD displays and parts, but companies in Taiwan are undercutting these prices by up to 30 per cent.

Peter Lunn, of Taiwan-based PC manufacturer, Acer, predicts up to 50 per cent price cuts in LCD screen prices by Christmas, according to Computer Weekly. However, industry observers remain sceptical, warning that manufacturers may try to convince customers to buy larger screens, to protect profit margins.

The appearance of new LCD manufacturers should also help ease the shortage of LCD components seen in recent years.