DVD recorder (4x) prices to drop 10% in the fourth quarter of 2003

October 6, 2003

Due to increased competition DVD recorder prices will likely drop about
10% in the fourth quarter of 2003. Also the current rapid technology advances
are a cause of the price drop. The optical storage market is dominated by mainly
Taiwanese produced recorders and an announcement of Taiwanese companies can be
seen as an announcement for the largest market share, and of course competitors
will need to follow.

Taiwanese makers are quoting 4x DVD+RW drives at US$100-110 and
4x DVD-Dual drives at US$120-130, the sources said. The falling prices are
mainly a result of intensified competition and an ongoing format upgrade
as many Taiwanese companies introduce 8x products. While BenQ started
volume production of 8x DVD drives in mid-September, Lite-On IT, Behavior
Tech Computer (BTC) and Accesstek reportedly plan to launch similar
products this month.

Prices, however, should fall at a
slower rate in the fourth quarter because they have already dropped
significantly and strong demand is expected in the traditional peak
season, sources projected. Overall prices may drop by about 10% in the
fourth quarter, or US$2-3 each month, they
added.

Intresting is that due growing demand and
component prices falling unpredictably, many Taiwanese drive makers, including
BenQ and Lite-On IT, have been shipping recordable DVD drives by air. According
to the companies, it normally takes three to seven days to ship their products
to the US or the Europe via air, compared to three or four weeks by
sea.

Source: Digitimes.com