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Wednesday, September 22, 2004
16x DVD burner OEM prices to remain stable in 4Q

Although OEM quotations for 16x DVD burners have fallen to US$60-70, the prices will remain stable till the end of the year, according to Taiwan makers of optical disc drives (ODDs).

Earlier this year, as leading global manufacturers, including Lite-On IT and BenQ in Taiwan and Pioneer, NEC, Hitachi-LG Data Storage (HLDS) and Toshiba-Samsung Storage Technology (TSST), ramped up production of 16x DVD burners and competed for OEM orders from such leading PC brands as Dell and Hewlett-Packard (HP), the OEM price dropped from US$90-100 in the second quarter to US$70-80 in August, and then dropped even further to reach its current level, the makers explained.

However, the price has recently stabilized, and no new entrants to the market are expected, the makers pointed out.

Due to high technological barriers, second-tier makers, including Quanta Storage, Behavior Tech Computer (BTC) and Ultima Electronics have had to delay volume production.

In addition, Foxconn, a leading EMS (electronics manufacturing services) provider does not plan to begin volume production of 16x DVD burners till the first quarter of 2005.

The fourth quarter is also the traditional peak-sale period for ODD makers, so the Taiwan makers expect demand to increase.

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