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But South Korean suppliers such as Samsung Electronics and LG.Philips LCD have launched aggressive campaigns to win the small side of the market as well with their lower prices and expanded production.
And their efforts are already paying off, iSuppli said, with Samsung and LG.Philips increasing their market share at the expense of the Japanese in Q2.
Samsung's share rose to 11.4% in the second quarter, up from 9.4% in the first.
LG.Philips LCD achieved a more modest increase in market share with an increase to 5.6%, up from 5.4% in the first quarter.
Still, iSuppli believes the Japanese companies maintain a technological edge, which they can use to produce higher-quality displays than the competition. They also have the opportunity to engage in mergers and acquisitions to bolster their manufacturing capacity.