DVD-ROM drive should be the follow up of CD-ROM drives, but DVD-ROM might have some problems before becoming thew new standard.
Many manufacturers believe DVD-ROM drives will have difficulty entering the mainstream and room for more growth may be limited. In addition, a shortage of 16x speed DVD-ROM drives may stop prices from falling any further.
Yang Wen-tze, AOpen's director of marketing, said first-half sales for DVD-ROM drives were rather slow and inventories high. Sales picked up in the second half and inventories came down to the point where 16x drives are now in short supply. According to some sources, more ample supply of 16x drives should be available in the next one to two weeks. Others are saying companies will not catch up until the end of the year. |
During the price war in the first half, OEMs were selling 16x speed DVD-ROM drives for as little as US$40. This price was not enough to maintain a substantial gross margin. Moreover, sales at the time were lower than anticipated. Now a 16x drive is going for US$55-60. Only a few companies are still offering a unit price of US$50.
DVD-ROM drives are experiencing difficulties entering the mainstream because of the price difference. Over half of consumers still prefer the cheaper CD-ROM drive with their new PC. Either that or they purchase a CD burner instead. Most consumers that are looking for high definition end up purchasing DVD players or other non-PC DVD-ROM equipment.
Source: Digitimes.com
