Already 30 Chinese DVD player manufacturers shut down due ove rsupply

August 9, 2004

According to Digitimes the Chinese
manufacturers of DVD players have a hard time. Already 30 of the current 200
manufacturers located in China have stopped their business. Many of the current
manufacturers are moving from the normal DVD players to new technology products.
The increased competition has dropped the prices of DVD players in China to
about 500 to 600 yuan. (1 yuan ~ 0,10 EURO)

Unwilling to pay royalties on DVD players, the Chinese makers are
unable to export their products and face increasing competition in the
domestic market. There are more than 200 DVD player producers in
China.

Despite the intense competition,
leading consumer electronics brands, including TCL, Skyworth, Changhong
and Haier, have recently begun selling high-fidelity DVD players costing
more than 700 yuan. Their goal is to develop products for the EVD
(enhanced versatile disc) format, a DVD-like format jointly developed by
China's main consumer electronics makers and the
government

Over here in Europe DVD players are already
amazingly cheap, but this news will probably not effect the prices of DVD
players outside of China. This because the manufacturers don't want to pay the
license fees for the DVD technology and therefor can't export them, nevertheless
many some smart distributors will find a way to help the Chinese get rid of
their oversupply.

Discuss this in our Stand Alone
Devices & Home Entertainment Forum.

Source: Digitimes.com