Memorex is one of the biggest brands in the CD media market and has announced that it will increase prices of CD-R and CD-RW discs with about 10 to 15% at the start of 2004. Although no other company has announced increased prices it would be no suprise if also other brands will increase their prices as they will likely suffer from the same difficulties as Memorex. Read the companies entire press release here.
leading blank CD media and still cooperate with its retail partners toactively market the products to consumers. Manufacturing costs have increased 35 percent this year due to patent royalty fees, rising production costs for petroleum-based plastics used to make optical media, as well as transportation costs to deliver products to arehouse and retail facilities. Until now, Memorex has absorbed all of these increases instead of passing them on to customers. "Due to our prime disc manufacturers' focus towards DVD discs and a lack of investment in new CD-R and CD-RW production facilities, production capacities can no longer meet consumer demand for CD media, and this trend is expected to continue into next year," said Michael Golacinski, president and CEO. "We have no alternative but to pass on the increase in cost to our retailers now in order to maintain our commitment to deliver high quality blank media that both our consumers and retailers have learned to trust and depend upon." |
Source: PRNewswire
