CyberHome to stop producing DVD players and recorders

October 4, 2006

According
to DigiTimes, Taiwan based CyberHome, has decided to cease
manufacture of DVD players and recorders. You could often find this brand deeply
discounted at retailers like Wal-Mart. The company places blame upon the royalty
payment that they are forced to pay the Philips company and downward pricing
pressures from China. At one time, CyberHome was producing around 1 million DVD
players a month.

Facing
the challenge from China makers and pushed by Philips that started taking
measures to claim royalty payments of US$3-5 per DVD player, Taiwan
companies has almost no chances to continue producing DVD players under
OEM contracts, the sources said.

As DVD players and recorders are involved in complicated
royalty issues, CyberHome is considering production of modules for DVD
players and recorders instead of finished products, according to the
company. In addition, CyberHome began development of portable multimedia
players (PMPs) in cooperation with Philips, the company
indicated.