Lite-On IT not playing NEC's price war over ODD


GristyMcFisty used our news submit to tell us that as manufactures
continue to lower prices of DVD burners a price war has been looming. Now NEC
has gone a knocked the price of a DVD burner from $35 to below $30. This
will of course attract a response from other
manufactures. 


Taiwans biggest maker of ODD equipment
LiteON has no plans move on price and will keep its prices at $33-35. While
LiteON are standing firm it will be interesting to see what other manufacturers
do including LG-Hitachi, Samsung-Toshiba, BenQ and Pioneer. We will sure get a
swift response soon on what the others want to do either try and compete with
NEC or follow LiteON's strategy.


NEC has lowered its contract-manufacturing quotes for 16x DVD burners to below US$30, down from US$35, as a price war looms among the world"s optical disc drive (ODD) makers, amid growing competition, according to the Chinese-language Economic Daily News (EDN).


But
Taiwan"s biggest ODD maker, Lite-On IT, said it has no plans to follow
suit, and its contract-manufacturing quotes for the segment will remain at
US$33-35, depending on the quantity of individual
orders.


With margins being squeezed so much its a amazing how any of them make any
money anymore.

Source: Digitimes

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