Senior officials at Philips Semiconductor, Europe's third largest
chipmaker, said yesterday that the outlook for DVD recorder sales
next year is rosy.
"We see a great role for the DVD recorder in the home," Indro
Mukerjee, an executive vice president at Philips Semiconductors,
told reporters in Taipei yesterday. "We see DVD recorders
becoming more pervasive as the price comes down and more and more
recorders go into the home."
Global research company International Data Corp (IDC) predicts
that the annual shipments of DVD recorders will grow to more than
50 million units in 2006.
"DVD recorders are set to ramp up even faster than players,"
IDC's report says.
Another research firm is more optimistic. Semico Research Corp
predicted in the summer that more than 3.5 million DVD recorders,
worth US$1.48 billion, will ship this year, rising to 47.9
million units, worth US$8.33 billion, in 2007.
"Our bullish outlook is based on the simple premise that DVD
recorders will eventually replace VCRs in most homes," Adrienne
Downey, an analyst at Semico, said in the report.
"Recording to DVDs means that content will last longer, whereas
content on VHS tapes begins to degrade much faster. DVD recording
also means that finding content will be easier due to the ability
to program menus on DVDs," Downey said.
Wireless technologies that allow consumers to use viewing screens
and devices anywhere in the house are making this happen,
Taiwanese companies are poised to grab a large slice of the
"Taiwan is leading the market in terms of the convergence of
computers, consumer electronics and wireless communications,"
Mukerjee said. "We see a kind of electronics Silk Route
developing between East and West. Taiwan is at the crossroads of
Another driving factor for the increase in digital recorder sales
is the growth of digital TV, Mukerjee said, citing the US Federal
Communications Commission's stipulation that all TVs larger than
36 inches (91cm) must be able to decode digital signals from next
year. The US, Europe, Japan, China and Taiwan have set deadlines
for the complete switch to digital television from 2006 to 2010.
"Taiwan has traditionally been a very heavy cable market,"
Mukerjee said. "We're optimistic a lot of brainpower will move
over to digital TV. We're optimistic that Taiwan will take a
leading role as it did in e-government."