According to DigiTimes, Lite-On IT expects to claim 10%-15% of the global market for DVD recorders in 2005, up from an estimated 8.3% this year, company president Danny Liao indicated.
Lite-On IT has been developing DVD recorder technology since 2000, and the company is optimistic about the market since DVD recorders, unlike DVD players, have a high technology threshold, preventing low-priced competition from China, Liao pointed out.
Lite-On IT DVD recorders are sold in the retail channel in the US and Europe. The number of Costco outlets selling the company's DVD recorders in the US has grown from six to about 400. The company's Europe channel includes Dixons in the UK and Casino in France, Liao noted. In addition, Lite-On IT is making efforts to secure OEM/ODM orders from international brands, Liao added.
DVD recorders have gross margins of 25-30%, as opposed to 20% for PC-use DVD drives/burners, Liao said.
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