Yesterday we already reported about prices going up, today there is also news from CMC. This is one of the worlds largest manufacturer of CD-R media, and sold by brand names as Nashua, Precision, Imation and Memorex and they are known for cheap prices and mainly low quality media.
However they are big in the retail markets and you can find their CD-Rs in almost every store that sells CD-Rs. The company has now released information that besides the price increase of about 15% in October, it will also increase prices with 5-10% in December.
CMC Magnetics, the world's second-largest recordable compact disc maker, will roll out another CD-R price increase in December, said a company official. |
Meanwhile, the company asserted it has enough cash on hand to repay European convertible bonds (ECBs) coming due in October, after recently securing a new syndicate loan from local banks.
The disc price increase, following a 15% rise the company plans for October, will likely range from 5-10%, depending on market conditions, said Andrea Wong, vice president of CMC.
A host of disc companies in Taiwan have announced plans this week to bump up prices in October by 10-15%, anticipating strong demand in the peak-selling fourth quarter.
The CD-R market is finally stabilizing after a year of oversupply and brutal pricing wars, Wong said, citing effects from manufacturers reining in production and distributors lowering inventory.
Despite a market glut that still hangs over the disc industry, dropping prices in CD-RW drives will continue to stimulate CD-R disc demand, with unit shipments worldwide reaching six billion this year, by some analysts' estimates.
Again, it's not sure if this price increase will also affect consumers. The entire article is pretty intresting if you are intrested in the CD-R market, read it here.
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Source: Digitimes.com
