Strong notebook sales have hit monitor manufacturers, who have seen less-than-expected market growth in the second quarter 2003.

Demand for 15-inch screens – as used in many notebooks – has also exceeded supply, as manufacturers move production to more profitable larger-sized screens .

Bob Raikes, principal analyst with displays firm Meko, said: "There is a significant shortage of 15-inch LCD monitors at present, and this will mean a slow down in the rate of growth.

"Clearly the increase in demand for notebook computers has not helped PC suppliers to maintain strong monitor shipment growth."

Demand for LCD displays will continue to rise, Raikes said: "By the beginning of 2005, LCD monitors will account for over three quarters of the market. However, this growth relies on the ability of the panel makers to increase production at the next wave of fabrication plants.

"To date, this has not proved easy and is one of the factors that allowed panel makers to increase prices on some panel sizes. The shortage of 15-inch panels has been caused by the panel makers moving production to larger screen sizes in the search for profitability."

LCD displays accounted for over 50 per cent of the European display market for the first time in the quarter, while supply constraints saw market growth rise by 7 per cent in the quarter. Wholesale LCD prices also rose.