Toshiba Samsung Storage Technology (TSST) has started putting pressure on Lite-On IT and BenQ by recently dropping its 16x DVD recorder retail pricing by 30% to US$69 both in US and European markets. Unlike most other optical drive makers, TSST has the competitive advantage of producing its own pick-up heads and chipsets, thus reducing production costs.
As a result of TSST's retail pricing drop, Taiwan's OEM optical drive manufacturers reduced their 16x DVD recorder OEM pricing to US$50 for large clients and to US$50 to $55 for large US and European retail channels. Now Lite-On It and BenQ will speed up on development of new drive models in aim to overcome the issue. GristyMcFisty used our news submit to send in the following news:
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TSST has the competitive advantage of self-produced pick-up heads (PUHs) and chipsets and the design capability to minimize the production costs of DVD burners, the ODD makers indicated. Lite-On IT and BenQ do not yet possess the same level of ability to minimize costs, and are therefore unable to compete on the same level, the ODD makers pointed out. Taiwan makers' OEM prices for 16x DVD burners have dropped to US$50 or even lower for large international clients such as Dell and Hewlett-Packard (HP), and to US$50-55 for large retail channels in the US and Europe. TSST's cutthroat reduction in its retail prices is expected to force Taiwan-based makers to further lower their OEM price quotes, the ODD makers noted. To cope with this threat, both Lite-On IT and BenQ will speed up the development of new models, the two companies said. According to the Japan-based Techno Systems Research (TSR), Hitachi-LG Data Storage (HLDS), Lite-On IT, NEC, Pioneer and Philips BenQ Digital Storage (PBDS, represented by BenQ) were the world's top five ODD producers in the third quarter of 2004. |
With DVD recorder prices coming to affordable prices for most consumers, it is coming to the point where there is little cost advantage of choosing a CD recorder (or CD-RW/DVD combo) over a DVD recorder unless the consumer is aiming to save every bit of cost they can or don't see any purpose in DVD recording for the foreseeable future.
Source: DigiTimes
