As we already reported
several times are Taiwanse DVD recordable manufacturers currently investing in
more production capabilities for their DVD recordable lines. The companies are
hoping to become market leaders by increasing the output of their factories.
However it seems that some of them might cause damage to the market as
oversupply is bound.
 All Taiwan's big optical disc makers, who together
make nearly 80 percent of the world's recordable CDs and about 50 percent
of DVDs, lost money in 2002 due to poor demand and price wars caused by
oversupply. They are scrambling this year to shift into more advanced DVD
production, especially as more movies and music videos are put on DVDs and
DVD players make their way into more households.
Industry analysts said DVD output from Taiwan firms would grow sharply
to make up nearly half of their revenues next year, from an average 10-15
percent this year. World No. 3 CD maker, Moser Baer India Ltd, also makes
DVDs. DVDs are pricier to make at 30 U.S. cents a piece compared with
10-20 cents for CDs, as producers use a higher quality chemical dye that
allows more information to be packed on to a disc. Profit margins are
therefore higher, with DVDs retailing at around $1.20 each, compared with
22 cents for a recordable CD.
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Source: ZDnet.com
