Low-cost notebook (netbooks) are expected to become popular in 2008, however, Led players have pointed out that material costs have increased while ASPs continue to fall leading to lower-than-expected gross margins. Orders from netbook backlight applications may contribute to LED revenues but not necessarily to profits in the third quarter, industry players warn.

BLU makers have estimated ASPs for LEDs will drop 8-10% sequentially in the third quarter, while on the other hand, LED packaging houses expect the drop to be only in the 3-5% range. In the first quarter, LEDs were down 15% due to the low season, and a weaker the usual peak season in the second quarter caused another 10% drop on quarter.

Panel makers estimate netbook shipments may reach 10-15 million units this year, promoting optimism among some LED players that netbook application LEDs will be their main growth driver in the second half of the year.

According to industry forecasts LED backlit notebooks may reach a market penetration of 30% in 2009.

From;DIGITIMES