Over at DigiTimes.com we can read an article about the price drops in key components of CD-ROM drives effecting the contract prices large manufacturers maintain:
The price trend was reversed after chipset maker VIA Technologies recently slashed its chipset price by as much as 20% and Mediatek, its main rival, followed suit. According to sources, the resulting price war has lowered chipset prices by half to US$2, bringing down costs and pressuring CD-ROM drive prices. As unit contract prices approach US$20, CD-ROM drive manufacturers say they nonetheless have managed to maintain their previous profitability, thanks to a new drive design that reduces production costs.
Some CD-ROM drive makers caution that the below-US$20 ticker does not apply to the industry as a whole, possibly only a bargain price negotiated by large clients like Dell Computer, Hewlett-Packard (HP) and Compaq Computer. The price quoted to middle and small-sized distributors is between US$21 and US$22.
CD-ROM drive manufacturers also noted that prices of other optical storage devices '“ CD-R and DVD-ROM drives, for instance '“ could track a similar course, as the price war between VIA and MediaTek escalates.
Now the last part of the article sounds interesting... Even though drives are already cheap in my opinion they can never be too cheap...
Source: DigiTimes.com
