Lower DVD burner prices hinge on royalty cuts says LiteON

Quakester2000

December 17, 2005

GristyMcFisty used our news submit to tell us that OEM prices for DVD
burners have now fallen to a low of US$35 but that further reductions in price
will depend on royalty charges being cut according to Lite-ON
IT.

DVD burner
manufactures at the current moment of time are not able to reduce the cost
of the components that the make up the DVD burner, though even more competition
will help drive prices as low as US$30. Most Taiwanese manufacturers agree that
the only way to compete is by keeping production costs tight and making more
drives to reduce costs.

OEM prices for 16x DVD Dual burners have fallen to as low as US$35 and further reductions in the price will depend on cuts in royalty charges, according to Taiwan's largest maker of optical disc drives (ODDs), Lite-On IT.

Current OEM prices for DVD burners have
little room for reducing the cost of components, Lite-On IT explained.
Intensive price competition is likely to push down OEM prices of 16x DVD
Dual burners to US$30, said many ODD makers in Taiwan. The only way to
cope with such price drops is to minimize production costs by expanding
economy of scale, these makers pointed
out.

Source: Digitimes