CMC one of the largest optical disc manufacturers in the world has posted an increase in sales while other Taiwanese disc makers posted a decline in sales. However the companies expect to make bigger profits because CD-R prices raise and they are able to make better margins on DVD discs. It has been a public secret that some companies have sold CD-R discs below their manufacturing price.
Compared to the previous month, CD-R disc manufacturer CMC Magnetics enjoyed a slight increase in January sales but rivals Ritek, Prodisc Technology and GigaStorage all posted declines. However, they feel the worst is behind them due to rising CD-R disc prices and strong recordable DVD disc demand. |
Ritek attributed the decline in January sales to its efforts to reduce shipments of CD-R discs with plastic cases, which are less profitable than those without cases. In addition, the company insisted on quoting prices above US$0.18 per unit. It aims to increase profit margins over shipments this year.
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Source: Digitimes.com
