Prices for important DVD recorder parts to fall by 7-10% in September

September 4, 2003

Digitimes reports that prices of pickup heads (PUHs) are decreasing with about 7 to 10% in September. These essential parts of DVD recorders are mainly produced and developed in Japan, where still most research and development is done. The parts are then distributed to mainly Taiwanese manufacturers, who are able to make cheaper drives due lower production costs in their country.

As major suppliers have aggressively expanded capacity, PUH supply has increased in recent months. Taiwanese optical storage makers, which had been suffering from short PUH supply, are expected to secure 150,000-200,000 units in September, up from only 30,000-50,000 last month, sources said.

Falling average selling prices (ASPs) of recordable DVD drives is another reason behind the price cut. Facing the plunging drive prices, manufacturers are making great efforts to lower the cost of key components, including PUHs and chipsets, sources said.