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Monday, December 22, 2003
Taiwan makers to face 8x DVD Dual price pressure from Japan and Korea


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 quarter.

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 currently.

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.


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