OEM prices for 8x DVD recorders to drop 10-20% further in Q1 of 2004

Digitimes reports once again that competition in the optical storage drive
manufacturing is increasing. The site reports that the Taiwanese companies,
responsible for the first price drop, now also get competition from Japanese
companies such as Pioneer and NEC again. Also the South Korean joint ventures of
Hitachi-LG and Samsung-Toshiba will increase the competition even
more.

Lite-On IT, BenQ, Behavior Tech Computer (BTC), Quanta Storage and Accesstek, the major Taiwanese makers, started OEM production of 8x DVD Dual burners in mid-November. With monthly production capacities ranging from 200,000 to 300,000 DVD burners, they plan to shift their production focus from 4x models to 8x models next quarter. Due to the competition for orders from international PC suppliers, the OEM price for 8x DVD Dual burners has slipped from the initial level of US$140-150 to below US$120 currently. In addition, Taiwanese makers will be under price pressure from abroad. NEC and Pioneer, globally the top two DVD burner producers, each with a capacity of 600,000-800,000 units a month, will begin volume production of 8x DVD Dual burners in the first quarter of 2004. Hitachi-LG Data Storage (HLDS) and the joint venture established between Samsung Electronics and Toshiba will also launch volume production next quarter.

The DVD recorder market is large, but many companies have found their way on
this market. Increased competition will result in lower prices for consumers and
with the current amount of price drops a DVD recorder will be affordable for
more and more people.

Source: Digitimes.com