Industry sources expect to see LED backlight units (BLUs) in a larger share of the LCD monitors made in 2009 than originally anticipated, both because their penetration in traditional monitors is growing and because all-in-one PCs are growing in popularity. That helps LED sales because all-in-ones (which used to be called monoputers in the days of CRT monitors) frequently use LED BLUs for the slimmer packaging they make possible.

Ken Werner
Senior Analyst and Editor

LED BLUs began their significant market penetration in notebook PCs, where their cost premium over traditional CCFL backlights was the smallest, and the value of their slimmer profile and lower power consumption was greatest. Many observers believed that LED BLUs would then jump to LCD-TVs, largely by-passing the monitor market where the cost premium would presumably be too high and the packaging and power benefits of less importance. The surprise in the traditional monitor market is that all of the major monitor suppliers will be introducing LED-lit models this year, Siu Han and Yvonne Yu reported in Digitimes earlier today, citing industry sources. Most of these LED-lit monitors will be 20 inches or larger, and use between four and five times the number of LEDs as a notebook PC BLU. As a result monitors could surpass notebooks as the largest IT application for LEDs.

All-in-one PCs, which we are considering to be part of the monitor market for the purposes of this column, are expected to help boost the market share of LED BLUs to 3.5% this year, 9% in 2010 and to 26% in 2011, Han and Yu said. With many of the major PC vendors launching them, sources estimate all-in-one PCs will have 5-10% of the LCD monitor market this year.

Why have all-in-ones become so popular so quickly? At CES I asked that question of Lenovo’s Stephen Miller, who was showing the company’s new IdeaCentre A600 all-in one, which comes with a 21.5-inch, frameless 1920×1080 LCD. Miller said, "When LCDs were expensive, people were unwilling to buy an all-in-one that would need replacing in 3 years, meaning they would have to throw out an expensive piece of glass. Now that glass is free, the concept makes financial sense. And people are now ready to upgrade the display in 3 years, too."

With prices starting at $999 (including a four-way remote control that serves as an air mouse, a game controller, a VOIP handset, and a media center remote), the A600 — as well as other all-in-ones — appears to represent a way for PC makers to actually sell products that have a decent margin.