High demand is likely to see smaller vendors lose out on supplies of LCDs during 2008 with increasing competition from TV manufacturers as they try to meet the inevitable demand for new televisions the Olympics and Euro 2008 will create.
The shortage is expected to hit hardest in the second half of the second quarter 2008 with the situation expected to be far worse than the shortages that affected the market earlier on this year.
However, there are signs that the crunch may be hitting earlier than expected with Dell announcing that it is facing severe shortages of several components, especially LCD screens for its XPS M1710 gaming laptops.
In a statement to its customers Dell said: "Dell is seeing supply constraints across various components, including LCD displays used in notebooks and monitors. Depending upon the model ordered by the customer and options chosen, the components included in their order will vary.
We understand that customers are frustrated because this is not a common occurrence for Dell. We are making steady progress toward addressing the backlog of orders. Teams are working around the clock globally to decrease the number of systems affected by delays.
We regret any inconvenience this may be causing our customers."