Digitimes reports that NEC will lower the OEM prices of its very popular dual format 8x drive. The step was made now also Taiwanese manufacturers are in the market and rapidly bring down prices. In order to secure the big orders from e.g large computer builders NEC was forced to bring down its prices as well.
|  NEC, faced with increasing competition from Taiwan's OEM makers, had little choice but to cut its price to secure OEM orders for 8x DVD-Dual burners from Dell, Hewlett-Packard (HP) and other international brands, the Taiwanese makers indicated. Taiwanese makers expect that, as OEM profitability is thinning, NEC will sooner or later follow Sony in stopping such production.
Taiwanese OEM makers pointed out that NEC's price cut will force them to follow suit to compete for OEM orders. According to Lite-On IT's Optical Disc Drive Business general manager Michael Gong, Taiwan accounted for 13% of global DVD burner output in 2003. Global demand for DVD burners, including half-height and slim type drives, will reach 45 million to 50 million units this year and Taiwanese makers' total share will exceed 30%, Gong predicted
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It seems to become the trend that the
Japanse companies introduce the technology and are able to sell the stuff with high margins for a while and as soon as the Taiwanese companies start their production and they'll lower the prices of the entire market. Read more in the article on Digitimes over
here. Discuss this in our
Recording Hardware Forum.
Source: Digitimes
