Main Taiwanese producers of optical disc drives anticipate a further drop in the OEM
price of 8x DVD Dual burners in the first quarter of 2004 due to increased supply
from Japanese and South Korean competitors.
Lite-On IT, BenQ, Behavior Tech Computer (BTC), Quanta Storage and Accesstek, the
major Taiwanese makers, started OEM production of 8x DVD Dual burners in
mid-November. With monthly production capacities ranging from 200,000 to 300,000 DVD
burners, they plan to shift their production focus from 4x models to 8x models next
Due to the competition for orders from international PC suppliers, the OEM price for
8x DVD Dual burners has slipped from the initial level of US$140-150 to below US$120
In addition, Taiwanese makers will be under price pressure from abroad. NEC and
Pioneer, globally the top two DVD burner producers, each with a capacity of
600,000-800,000 units a month, will begin volume production of 8x DVD Dual burners
in the first quarter of 2004. Hitachi-LG Data Storage (HLDS) and the joint venture
established between Samsung Electronics and Toshiba will also launch volume
production next quarter.
Taking these factors in mind, Taiwanese makers predict that their OEM prices will
drop by 10-20% further in the first quarter of 2004.