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Wednesday, May 18, 2005
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CMC Magnetics: OEM prices of DVD+R/-R discs to further rise next quarter
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The increased demand for DVD+R/-R discs has resulted in an increase in OEM
prices by 10%-15% in total for this quarter.
This is expected to further push up prices in the third quarter
when it will begin to climb on a monthly basis rather than per quarter as it is currently, said
CMC Magnetics chairman Robert Wong.
CMC is currently enjoying booming business, with the volume of received orders 20% in
excess of production capacity, Wong indicated. The company expects its operation to turn
from an operating loss last quarter to a profit this quarter and steadily increase profitability
through next quarter, Wong noted.
In view of growing demand for DVD+R/-R discs, many makers of optical discs in Taiwan are
transforming or are planning to transform CD-R production lines into lines for making DVD
discs. The capacity expansion will not substantially affect this year's global market of
DVD+R/-R discs, Wong pointed out. This is because the transformation will result in lower
production capacity, for example, from 100 million CD-R discs originally to only 30-40 million
DVD+R/-R discs, Wong explained. |
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